The FLSA: Exempt Vs. Non-exempt Employees Essay

In 1936 by President Roosevelt who signed the Fair Labor Standard Act(FLSA) making a federal minimum wage of .25 cents an hour (equivalent to $4.18 today)(Grossman) in order to maintain a “minimum standard of living necessary for health, efficiency and general well-being, without substantially curtailing employment”. This wage only affected about 20% of the entire labor force. The Fair labor Standards act was not always looked at being the best way to go, when it was enacted just like in today 's society it was fought against to raise the minimum wage. Many corporations were arguing against the creation of the

The Fair Labor Standards Act has been amended many times and is virtually an ever-changing law, however, it does not cover all employees. There are several classes of “exempt” employees, including salaried employees in the executive/managerial, administrative, and professional areas. Outside salespeople are also considered exempt. One of the issues facing companies today is knowing which employees are exempt and which are non-exempt. There are tests to determine if an employee is exempt. In 2004 the tests changed to a standard test, which is whether or not the employee’s salary is $455/week or greater and the duties test, which allows for exempt status if more than 50% of the work performed by an individual is “exempt work.” (Pass and Broadwater) Exempt employees do not receive overtime pay, which can be a substantial cost savings to a company. My previous employer required that an exempt manager close the center each night even though we had non-exempt team leads who acted as managers in most capacities. The reason was to avoid overtime costs.

The Fair Labor Standards Act was first developed by Hugo Black, a senator from Alabama, in 1932. Senator Black saw a problem that existed with people in the workforce being overworked and underpaid and wanted to provide a solution. President Franklin D. Roosevelt was a strong supporter of this effort and stood behind Senator Black. According to President Roosevelt, the FLSA was “the most far-reaching, far-sighted program for the benefit of workers ever adopted in this or any other country.” During this time, workers in several different industries were faced with

Considered to be a landmark, in 1938 President Franklin D. Roosevelt signed the Fair Labor Standards Act. The nation was experiencing social and economic development of judicial opposition and depression. This law set national minimum wages and maximum hours workers can be required to work. Incorporated into this law are overtime pay and established standards to prevent child-labor abuse. Consequently, in 1963 an amendment was made to this law, which prohibited wage discrimination against women.

What is the Fair Labor Standards Act? The Fair Labor Standards Act is better known as the FLSA. The FLSA established a maximum hour work week, a minimum wage pay, overtime pay, and child labor laws. Many people are aware of the basic FLSA parts but big changes have come.

By 1938 the Fair Labor Standard Act was probably one of the strongest change makers that were produced due to the fire – by establishing minimum wage, overtime pay, record keeping and youth employment standards affecting full time and part-time workers in the separate region and in federal, state and local governments. FLSA also set wages at the same rate and paid women for overtime as well prevented child labor until the age of 16 and older with limited working hours and jobs that children can work.

The United States has a plethora of labor laws in place to help clarify the rights of workers, employers, and even labor unions. Federal laws, such as the Fair Labor Standards Act, the National Labor Relations Act, the Civil Rights Act of 1964 and the Occupational Safety and Health Act helped form the working standards that we still use in today’s society. In the scope of minimum wage policy, The Fair Labor Standards Act (FLSA) helped pioneer the labor force in the US. The FLSA was the first federal statute (that was successfully passed) to introduce the forty-hour workweek, "time-and-a-half" for overtime work, the regulation of child labor, and set a national minimum wage for the first time. Like most federal statutes, adjustments needed to be made over its lifetime.

disabilities and respond to government regulations and guidance issued by the Equal Employment Opportunity Commission (EEOC). Additionally, the policy will not discriminate against qualified individuals with disabilities concerning application procedures, hiring, advancement, discharge, compensation (or benefits), training or other terms, conditions and privileges of employment.

c. Roosevelt created the Fair Labor Standards Act to establish better working conditions. The Fair Labor Standards Act established a minimum wage of forty cents, and a forty hour work week (chart 1, Line 17).

The act created the Wage and Hour Division (WHD) within the Department of Labor to enforce the act. The FLSA established a federal minimum wage of $0.25 an hour. The FLSA also requires that employees receive one and a half times their hourly wage for every hour worked beyond a standard workweek. The FLSA applies to employers whose annual sales are greater than $500,000 or engage in interstate commerce. If the employer does not meet the $500,000 threshold, the employee may still be covered by the FLSA if they engaged in interstate commerce. The FLSA allows for certain employees to be paid a subminimum wage. For example, tipped employees may be paid less than the basic minimum wage, but their cash wage plus tips must at least equal the basic minimum wage. Other types of employees who may be paid a subminimum wage include: certain disabled workers, new hires under the age of 20, and student learners (Minimum Wage Overview: Provisions Of The Fair Labor Standards Act. (Cover story), 2013). Employees whose jobs are governed by the FLSA are classified as either “exempt” or “nonexempt”. Employees who are exempt are not entitled to overtime pay. To be classified as exempt, employees must earn a minimum of $455 per week and meet certain duties tests for their job type. Executive, Administrative, and Professional employees are exempt provided their jobs meet the standards. Outside salespersons and

In general, these laws found in chapter 1 of our text are made to enforce and ensure proper wage, safety, and work hours for all individuals, without any form of discrimination, such as the FLSA act of 1938 and the Equal Pay Act of 1963 along with others found in this lesson. They also allow for medical issues or disabilities within the family such as the FMLA of 1993. The four groups can be categorized as income continuity, safety, pay discrimination and work hours. Others may be accommodating families with physical and mental disabilities and other wage laws. If I were to decide between the groups which is most important I would have to say that they would all be equally important

On June 25, 1938 President Franklin Roosevelt signed the Fair Labor Standards Act. The Fair Labor Standards Act is a law made to establish a federal minimum wage, overtime pay, and youth employment standards. Since 1938 the federal minimum wage has been raised 22 times. States are allowed to set their own individual minimum wage laws, and under the Fair Labor Standards Act, employers are required to abide by state wage laws. According to The Negative Effects of Minimum Wage Laws “Currently forty-five states and the District of Columbia have individually set their own minimum wage, of which eighteen are higher than $7.25 an hour. Only five

The Fair Labor Standards Act is an act that helped fix the unequal pay of labor to time ratio. President Franklin D. Roosevelt signed this act in 1938. The Fair Labor Standards Act helped employees so they were not having to do what

The medical caretakers have a case based upon the rules put forward by the EEOC wherein pay separation disregarding Title VII, the ADEA, or the ADA might be available in various structures, and one of those structures is the point at which a business purposely sets the pay for job that is held fundamentally by ensured class individuals underneath that recommended by the business' occupation assessment study, while the pay for employments predominately held by employees outside the secured class is steady with the level proposed by the occupation assessment study. It is my understanding of this case if the situation is set into this setting, once the workers are surveyed by the EEOC, it would be distinguished as remuneration separation wherein

The original language pertaining to anyone working with computers was first introduced in 1990. An be labeled exempt one would have to be paid an hourly rate and paid no less than six and a half times the minimum wage. In 1996 the rate was adjusted to a fixed rate of $27.63 an hour(U.S. Cong. Small Business). It was only small decrease from the previous rate at the time. But then in 2004 the language was further changed. While it was a small change the impact was huge. Instead of only being exempt if you were paid an hourly rate, you could also now be exempt if you were paid a salary (National Archives and Records 69:79). The minimum salary rate has not changed since then and remains at 455 a week (United States. Dept. of Labor). To now be exempt as a system developer or systems analyst you can either be paid $27.63 per hour or a salary of $455 per week. The difference is in those wages is astounding though. At the fore mentioned hourly rate for a 40 hour work week, you would earn $57,470.04 a year. Though if a company decided to pay the minimum salary rate,, they would only make $23,660 a year and would receive no extra