A recent investigation by the U.S. Department of Labor’s Wage and Hour Division substantiated complaints during a federal investigation that a Dallas Home Care Provider violated the Fair Labor Standards Act (FLSA) overtime requirements by not paying overtime to employees who worked over 40 hours in a workweek. The investigation recovered over $50,000 in back wages for 29 workers.
The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments. The FSLA requirements include:
FSLA Overtime: Covered nonexempt employees must receive overtime pay for hours worked over 40 per workweek (any fixed and regularly recurring period of 168 hours – seven consecutive 24-hour periods) at a rate not less than one and one-half times the regular rate of pay. There is no limit on the number of hours employees 16 years or older may work in any workweek. The FLSA does not require overtime pay for work on weekends, holidays, or regular days of rest, unless overtime is worked on such days.
FSLA Minimum Wage: The federal minimum wage is $7.25 per hour effective July 24, 2009. Many states also have minimum wage laws. In cases where an employee is subject to both state and federal minimum wage laws, the employee is entitled to the higher minimum wage.
Hours Worked: Hours worked ordinarily include all the time during which an employee is required to be on the employer’s premises, on duty, or at a prescribed workplace.
The U.S. Department of Labor provides a Handy Reference Guide to the Fair Labor Standards Act. The Reference Guide can be accessed at: Handy Reference Guide to the Fair Labor Standards Act | U.S. Department of Labor (dol.gov).
Issue:
The Fair Labor Standards Act must be adhered to at all times within your facility. It is imperative that all employees who are responsible for determining rates of pay, deciding overtime pay eligibility, and performing recordkeeping of wages are well trained in the Fair Labor Standards Act. When overtime is required within your facility, it is critical that all federal laws are adhered to for the employee who is working overtime. Violations of the Act can result in fines and other penalties.
Discussion Points:
- Review your policies and procedures on fair wages, overtime pay eligibility, and recordkeeping. Ensure that the rescinded rule is not incorporated into your policies. Update your policies as needed.
- Train all staff who have responsibility for ensuring fair wages, overtime pay eligibility, and recordkeeping so that they are knowledgeable about your policy and procedures to ensure they comply with the requirements. Train all staff who have responsibility for supervising and scheduling minors about the requirements that must be met when you employ minors in your setting. Document that these trainings occurred, and file each signed document in the employee’s education file.
- Periodically audit to ensure that fair wages, overtime pay eligibility, and the recordkeeping of hours worked are accurate and being reported correctly. Also, when employing minors, ensure that all employment requirements and limitations on hours worked are followed.
