FLSA Compliance: A Human Resource Management Review for Elora Jean

This presentation provides an overview of the Fair Labor Standards Act (FLSA) and its implications for Elora Jean & Co.'s human resource management practices. It covers key provisions such as overtime requirements for non-exempt employees, minimum wage standards, and child labor regulations. The presentation discusses the consequences of improper employee classification, emphasizing the importance of accurate job analysis and job descriptions. It also highlights the significance of maintaining thorough employee records as mandated by the FLSA. Furthermore, the presentation addresses potential issues such as increased labor costs and unemployment and offers insights into human resource policies. It concludes by emphasizing the importance of adhering to FLSA regulations to avoid legal penalties and maintain a positive company image. The presentation draws upon various academic sources and legal references to provide a comprehensive understanding of FLSA compliance in the context of Elora Jean & Co.

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).