Fair Labor Standards Act: Regulations on Labor Overtime, Child Labor, and Minimum Wages

This presentation provides an overview of the Fair Labor Standards Act and its regulations on labor overtime, child labor, and minimum wages. It covers topics such as nonexempt and exempt employees, implications of non-compliance, improper classification, procedure for overtime payment, job analysis and job description, record keeping, and HR policies. The presentation also discusses the specific issues faced by Elora Jean & Co. and emphasizes the importance of following these regulations to avoid penalties and maintain a strong image in the market.

Human Resource
Management

Introduction
 The Fair Labor Standards Act is a centralized law.
 It contains provisions regarding minimum wages, child labor,
overtime standards and health and safety measures of labor.
 Elora Jean & Co. hires many labor which are regulated through Fair
Labor Standards Act.
 As an Human Resource Manager, this presentation is focused on labor
overtime, child labor, minimum wages and recordkeeping.

Overtime Requirements
 Employee can work overtime with no limit to work.
 Employees would be paid of one and half times according to
regular rate.
 Overtime will be calculated after 40 hours (Lasowski, 2009).
 Exempt employees will not be eligible for overtime.
 A employee should work for 8 hours a day and 40 hours a week.
 Overtime will not be calculated for Holiday, Saturday and Sunday.
Non-
exempt
Default status for
all positions
Eligible for
overtime
Paid for all time
worked
Must be paid at a
rate greater than
or equal to
minimum wages
Receives
overtime pay for
any time worked
over 40 hours in
a workweek
Exempt
Exception status
for a position
Not eligible for
overtime
Paid a flat
amount for all
time worked
Must be paid at a
rate greater than
or equal to the
salary minimum
Status granted
under set criteria,
including job
duties and pay
type and level.

Employees
 There are two categories of exemptions in Fair Labor Standard Act.
 Elora Jean & Co. will make sure that his exempted employees were
actually exempted according to sections 213(a) and 213(b) of FLSA.
 Under FLSA, minimum wage requirement and overtime standard were
applicable on non-exempted employees.
 Non-exempt employees are liable to pay @ $7.25 per hour and those
who were under 20 were liable for $4.25 per hour (Office of financial
management, 2019).

Implications
 Labor union can recover due wages of up to two years.
 If there is willful default, payback period will be three years and amount of
wages can be doubled.
 Employees can sue the company for the recovery of wages.
 In case of willful default, person is liable personally according to the provisions
of the Fair Labor Standard Act.
 Any severe offence may attract criminal proceedings as well (Gillivary &
Borgen, 2011).

Improper Classification
 In case of improper classification among employees, it will considered
breaching of legal provisions and person will le liable for the fine up to
$10,000 and $1,000 in case of default.
 Under Fair Labor Standard act, there are two employees governed by this act.
 The one employees are who were liable for wages according to exempt
employee’s regulations.
 The other one is non-exempt employees.
 Employer is responsible for verification regarding employee status (Abdelhak,
Grostick & Hanken, 2013).

Procedure
 Supervisor such as Human Resource Manager will liable for the payment of
overtime to employees who work overtime.
 Overtime will be paid according to prescribed standards i.e., more than 40 hours a
week in case of non-exempt employees.
 Exempted employees will not be liable for overtime unless circumstances
demanded.
 Provisions of Fair Labor Standard Act must be complied with (Crawley, Swailes &
Walsh, 2013).

Job Analysis
 Job Analysis and Job Document is a job work of Human Resource Manager
(Baker, 2016).
 There are various strategies to classify employees.
 Job classification helps to evaluate duties, to prepare wage plan, and other
responsibilities (Fine, & Getkate, 2014).

Job Description
 It is a document which contains tasks, liabilities, rights and liabilities
related to particular job.
 It also contains qualification, skills and other requirements for
particular designation.
 There is no specific format of job description document.
 Job description document should be flexible as environment of
organisation is dynamic.

Record Keeping
 According to Fair Labor Standard Act, every employer will maintain
employee record.
 There is no specific format of maintaining employee record under Fair
Labor Standard Act.
 Records should contain relevant information which presents true and
fair view of employee.
 Maintenance of records will help to evaluate employee performance
(Janine,2016).

Issues
 Increased worker cost.
 Increased unemployment.
 Increased inflation rate.
 Child labor causes poor health, malnourishment and death of children.
 Issue with record keeping is lost records, record storage, etc. (Henriques, 2010).

Human Resource Policy
 Malaysian HR Policies is responsible for the recent growth of Malaysia.
 Wage rate are very low in Malaysia.
 There is shortage of workers in various sectors such as IT, other
technological jobs.
 HR policies are improving day-by-day to reduce foreign workers.
 HR Policy involves Recruitment policies, termination policies, and
pension and other benefits (Brewster & Hegewisch, 2017).

Elora Jean & Co.
 Elora Jean & co. is facing many issues with their employees regarding
wages, overtime, record-keeping and child labor as well.
 Company is facing legal issues such as union challenges, complying
with provisions of applicable law.
 Union issues will result in poor performance of workers which will
arise issues in accomplishing organisational goal.
 It will also result in poor tracking of worked hours of workers.

Conclusion
 Elora Jean & Co. is facing union issues such as overtime, minimum wage, child
labor, etc.
 This presentation contain rules and regulations regarding minimum wages,
overtime, record-keeping, etc.
 Elora Jean & Co. has to follow up these regulations to build an strong image
and to sustain long term in the market.
 Company must follow up with these regulations otherwise it will attract severe
penalties.

References
 Lasowski, A. (2009). Fair Labor Standards Act: Better Use of Available
Resources and Consistent Reporting could Improve Compliance:
Congressional Testimony. US: Diane Publishing.
 Office of financial management. (2019). State Human Resources.
Retrieved from: https://
ofm.wa.gov/state-human-resources/compensation-job-classes/compensati
on-administration/fair-labor-standards-act-flsa/overtime-eligible-document
ing-hours-worked
.
 Gillivary, G. & Borgen, D. (2011). Wage and Hour Laws: A state-by-state
survey. United States: BNA Books.
 Abdelhak, M., Grostick, S. & Hanken, M. (2013). Health Information:
Management of a Strategic Resource. Philadelphia: Elsevier Saunders.

 Crawley, E., Swailes, S. & Walsh, D. (2013). Introduction to International
Human Resource Management. United Kingdom: Oxford University.
 Janine, B. (2016). Labour Markets Institutions and Inequality: Building Just
Societies in the 21st Century. UK: Edward Elgar.
 Henriques, A. (2010). Corporate Impact: Measuring and Managing your Social
Footprint. London: Earthscan.
 Fine, S. & Getkate, M. (2014). Benchmark Tasks for Job Analysis: A Guide for
Functional Job Analysis. New York: Psychology Press.
 Brewster, C., & Hegewisch, A. (2017). Policy and Practice in European Human
Resource Management: The Waterhouse Cranfield Survey. New York:
Routledge.
 Baker, T. (2016). The End of the Job Description: Shifting From a Job-Focus To a
Performance-Focus. United Kingdom: Palgrave Macmillian.