Introduction: The History Behind the Laws

The Fair Labor Standards Act (FLSA), which was enacted in 1938, mandates that employers in the United States adhere to minimum wage and hour criterion. The need for standard wage laws arose during the Industrial Age, when sweatshops began employing women, children, and immigrants whose desperation and poverty forced them to endure severe working conditions in exchange for less than adequate wages. While social activists advocated for laws at the state level that would protect workers from such unfair treatment, the courts held that minimum wage laws were unconstitutional because they interfered with rights of employers and employees to liberally negotiate and enter into contracts regarding appropriate wages. Fortunately, President Franklin D. Roosevelt succeeded in enacting federal legislation, which allowed him to control and set a minimum wage, and the result was the FLSA. In addition to the payment of minimum wage, the law governs overtime payment for employees who work more than forty hours per work week, sets employment limitations in regards to children workers, and requires employers to keep detailed and up-to-date records.

Minimum Wage

The FLSA applies to all businesses whose annual sales reach $500,000 or more. Employees employed by businesses who fail to realize this amount may still be protected if their work involves “interstate commerce,” which is construed very broadly and includes just about any dealings between states. Further, even small local businesses may be covered by the state’s minimum wage law, and some cities and counties have implemented their own laws as well. Minimum wage, which began at merely twenty-five cents, is subject to change only when a bill is passed by Congress and signed into law by the president. Such changes occur from time to time in order to stay aligned with U. S. economic conditions.

Exceptions exist, and some students and disabled workers fall outside the bounds of the FLSA, and they may therefore receive less than minimum wage. Restaurant servers and other employees who receive tips may also be paid less if their tip money amounts to at least minimum wage. Under California law, restaurant owners may not pull together all of the employees’ tips and disperse them equally amongst the employees and managers alike. Moreover, contrary to federal regulations, California prohibits employers from counting an employee’s tips as credit towards the employee’s minimum wage, and California employees are entitled to receive minimum wage in addition to any tips they have earned. If an employee’s tips are included in his hourly pay, or he is discriminated or retaliated against for filing, or even threatening to file a claim with the Labor Commissioner, he should consult an employment lawyer in Los Angeles to ensure that he obtains the payment he deserves.

Overtime

The FLSA compels the majority of employers to pay overtime to those employees who put in forty or more hours of work in a single work week, “at a rate of one and one-half times the employee’s regular rate of pay.” However, some employees are exempt from the security of the FLSA, and minimum wage and overtime pay conditions do not apply to them. Such employees include those who earn at least half of their total wages from sales commissions, certain computer professionals, drivers and mechanics whose work concerns the safety of particular vehicles, farm workers, seasonal and recreational employers, and several types of white collar workers. It appears that the FLSA is extremely pro-employee, and an employer is obliged to pay workers for extra hours put in, even if those hours were not required. An employee may also earn overtime for correcting mistakes, even if done voluntarily, and for simply being present.

Conclusion

It is crucial that employers follow the federal guidelines for overtime and minimum wage, as well as any applicable laws at the state level. If an employer has any doubts as to whether its policies comply with the relevant standards, it should seek a Los Angeles employment lawyer to be sure. In addition, non-exempt employees who believe that they are not being treated fairly and lawfully should consult an employment lawyer in Los Angeles to protect their rights.