vendredi 10 janvier 2014

How The Fair Labor Standards Act Exemptions Should Be Applied

By Marissa Velazquez


Employers should observe the stipulations laid down in the Fair Labor Standards Act in order to ensure workers receive their pay as prescribed in the law. Understanding applications of fair labor standards act exemptions can avert conflicts in workplace. According to Fair Labor Standards Act-FLSA, exempt workers are paid their salaries as stipulated, and they are not subjected to reductions in pay due to variations in the quality and quantity of work they perform.

On salary level test, an employee should be paid 455 dollars in one workweek or the equivalent in annual basis. The amount of payment and salary is not subjected to pro-rate effects for part time employees. On the salary basis test, employees are required to receive fixed or predetermined salary, which is not subjected to reductions from work variations whether in terms of quality or quantity of the amount of work performed.

The provisions of the law specifically take into account the child labor prohibition, setting of minimum wages, the entitlement of overtime pay, and prohibition of wage differentials based on sex. They also entail requirements for record keeping by ensuring that workers and employers have details on how they have worked.

If an exempt worker absents from work for a day or more on grounds that are not clearly understood by the company, reductions can be made on their salaries. If an employee absents from work on personal reasons, which do not qualify for vacation time or sick leave, then the act allows permission on reductions to be made on the salary of such employees.

It requires an employee to have worked more than 40 hours in a workweek in order to be entitled for overtime and proper record keeping is needed to remain complaint with this law. Workers who are exempted from this law should meet three tests, which are namely salary level, salary basis, and jot duties. It is important that employers and employee understand these kinds of regulations to avoid conflicts of interest.

Exempt employees based on salary levels are required to routinely receive full salary for a week they have performed work and this is regardless of the days and number of hours worked. Nonetheless, if the workers do not perform work in any workweek, they are not paid for that duration. In addition, there are exceptions to this salary basis exemption.

One exception is that the employer may fail to pay for work if an employee absents himself or herself for one or more full workdays on personal reasons, which are outside sickness or disability. The same also applies if the worker has already exhausted all the vacation time he is entitled. This exception applies if the employee has exhausted the requested leave days without pay, otherwise partial days are entitled for full pay.

Overtime is perceived as the time an employee works more than 40 hours during one workweek. Employees and employers alike are required to keep record of the working schedules and time in order to remain compliant. With proper understanding and adherence to regulations governed by the fair labor standards act exemptions, employers and employees are able to come into common agreements and avert conflicts.




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