Discuss the three major provisions of the FLSA—minimum wage rates, overtime rates, and child labor requirements—and the penalties for misclassification of employees.

Question

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Answer 1

Minimum wage rates identify the lowest hourly rate of pay generally allowed under the FLSA. There are many exemptions, but if a person is nonexempt, minimum wage will apply. Overtime rates are also required for persons who are nonexempt. However, there are different exemptions for overtime than there are for minimum wage, so HR managers must check the law to determine who will have to be paid overtime. Child labor requirements within the FLSA identify the jobs and allowable working hours for individuals between 14 and 18 years old. Sixteen- and 17-year-olds can only be employed in nonhazardous jobs, but their work hours are unrestricted. However, 14- and 15-year-olds can only work outside school hours, and the jobs that they are allowed to do are limited to retail and other service positions. They may not work overtime. The employer can personally be criminally prosecuted and fined up to $10,000 per misclassification infraction. There is no maximum limit to the allowable fines, so fines in the millions of dollars have been assessed in the past. A second conviction can result in imprisonment. Employers who willfully or repeatedly violate the exemption rules may be assessed civil penalties of up to $1,100 per violation. For child labor violations, the civil penalty can be up to $11,000 per worker for each violation and can go to as much as $50,000 or even $100,000 if the violation causes the serious injury or death of an employee less than 18 years old.