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Complete Home and Office Legal Guide (Chestnut) (1993).ISO
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/* Here is the full text of the U.S. Department of Labor's
publication regarding Employer's and the Minimum Wage Law */
Employer's Guide to Compliance with Federal Wage-Hour Laws
Note:
This publication provides general information about the laws
administered and enforced by the Wage and Hour Division. It does
not attempt to answer all legal questions which may arise under
these laws. It should not be considered in the same light as
official statements of position contained in regulations or
interpretative bulletins published in the Federal Register and
the Code of Federal Regulations, or in the official opinion
letters of the Wage and Hour Administrator. Copies of these
publications may be obtained free from the Division's nearest
office.
Why has a Wage and Hour Representative visited me?
The Wage and Hour Division of the U.S. Department of Labor
administers a number of Federal laws which set basic labor
standards. The Division's representative, called a compliance
officer, will make an investigation to determine whether these
laws apply to your business. If your business is subject to
these laws, the compliance officer will verify that your workers
are paid according to the law and that youths under 18 are
employed as provided by law. The Division does not require a
compliance officer to previously announce the scheduling of an
investigation. Although in many instances the compliance officer
does advise employers prior to opening the investigation, he/she
cannot always do so. The compliance officer must have sufficient
latitude to initiate unannounced investigations in many cases in
order to observe normal business operations and expedite
development of the facts. However, you have the right to request
that the investigation be delayed briefly if you are unable to
meet with the compliance officer due to prior commitments.
/* This is very important. You DO NOT have to drop everything and
proceed with an investigation. In fact, it's probably better
that you don't do so. Of course, you may have counsel present. */
Why was my business selected for an investigation?
Wage and Hour conducts investigations for a number of reasons.
Many are initiated by complaints. All complaints are
confidential; the name of the worker and the nature of the
complaint are not disclosable.
In addition to complaints, the Division selects certain types of
businesses or industries for investigations. Occasionally, a
number of businesses in a specific geographic area will be
examined. In either situation, the objective is to improve
compliance with the law in those businesses, industries, or
localities. Regardless of the reason for the investigation, all
investigations are conducted in accordance with established
policies and procedures.
What are my rights as an employer?
As an employer you have the right to:
* Look at the compliance officer's credentials and, if there
is any question, verify his/her identity by calling the Wage
and Hour area director for your locality.
* Receive a full explanation of the investigative process.
o Ask any questions concerning the application of the law and
receive copies of Wage and Hour's publications.
o Receive an explanation of any violations or back wages found
due.
o Meet with the compliance officer's supervisor should you
fail to resolve any compliance problems with the compliance
officer.
o Present additional information for consideration if
violations are disclosed.
o Request the presence of your attorney, accountant, or other
advisors at any time during the investigative process.
/* USE THIS RIGHT! Don't waive it.*/
o Pursue your case in the courts.
What are the laws and how do they apply?
Coverage under the Fair Labor Standards Act (FLSA) is very broad.
The FLSA applies to all employees of certain enterprises having
workers engaged in interstate commerce, producing goods for
interstate commerce, or handling, selling, or otherwise working
on goods or materials that have been moved in or produced for
such commerce by any person. A covered enterprise consists of
the related activities performed through unified operation or
common control by any person or persons for a common business
purpose, and which is:
o Engaged in laundering or cleaning or repairing of clothing
or fabrics.
o Engaged in the business of construction or reconstruction.
o Engaged in the operation of a hospital; an institution
primarily engaged in the care of the sick, the aged, the
mentally ill or defective who reside on the premises; a
school for mentally or physically handicapped or gifted
children; a preschool; an elementary or secondary school; or
an institution of higher education (regardless of whether or
not such hospital, institution or school is public or
private or operated for profit or not for profit).
o Comprised exclusively of one or more retail or service
establishments (as defined in the Act) whose annual gross
volume of sales or business done is at least:
Beginning July 1, 1978 - $275,000
Beginning July 1, 1980 - $325,000
Beginning January 1, 1982 - $362,500
(any retail or service enterprise which had an annual gross
volume of not less than $250,000 on June 30, 1978 and which
later ceases to be a covered enterprise as a result of
increases in this dollar volume test must continue to pay
its employees at least the minimum wage in effect at the
time of the enterprise's removal from the coverage, as well
as overtime in accordance with the Act).
o Any other type of enterprise having an annual gross volume
of sales or business done of at least $250,000.
The dollar volume standard mentioned in (4) and (5) excludes
excise taxes at the retail level which are separately stated.
Employees who are not employed in a covered enterprise may still
be entitled to the Act's minimum wage, overtime pay, and child
labor protections if they are individually engaged in interstate
commerce or in the production of goods for interstate commerce.
These include:
o Communication and transportation workers.
o Employees who handle, ship, or receive goods moving in
interstate commerce.
o Clerical or other workers who regularly use the mails,
telephone, or telegraph for interstate communication, or who
keep records on interstate transactions.
o Employees who regularly cross state lines in the course of
their work.
o Employees of independent employers who perform clerical,
custodial, maintenance, or other work for firms engaged in
commerce or in the production of goods for commerce.
o Employees who produce, manufacture, or otherwise work on
goods for commerce, or in processes or occupations closely
related and directly essential to the production of goods
for commerce.
If your business is covered by the FLSA, there are certain
standards you must follow:
Minimum Wage: Presently $3.35 an hour for all covered employees.
Overtime: Nonexempt workers must be paid one and one-half times
their regular rates of pay for all hours worked over 40 in a
workweek. Some employees are excluded from the minimum wage or
overtime provisions, or both, by specific exemptions. Because
each exemption is narrowly defined under the law, an employer
should carefully check its exact terms and conditions before
applying it.
Recordkeeping: Business owners are required to keep payroll
records and records of hours worked for their covered employees.
The Act requires no particular form for the records. All it
requires is that the records include certain identifying
information about your employees, the hours they work and the
wages earned. The law requires this information to be accurate.
Following is a breakdown of the basi