Does FLSA Impact The Small Scale Businesses?

Have you heard about the Fair labours standards act? Do you have questions related to it? Like what is it? How do employers get impacted because of this law? How does this law impact your productivity? Is there any compliance components associated with it? Let’s discuss about the FLSA in detail-

What is Fair labours standards act?

The fair labours standards act specifies the standards for the overtime pay and the basic minimum wage. Most of the private as well as the public employment get affected because of this. The act reveals the overtime pay, minimum wage, recordkeeping and standards of child labour affecting part time as well as the full time workers in federal, local and state governments and in the private sector.

Covered and non-exempt workers have to be paid the wage that is not less than dollars 7.25 per hour, effective from 24th July 2009.After working for 40 hours in a week, the overtime pay not less than one half and one time the regular pay is required to be paid.

The Rules

In certain jobs the children below the age of 18 are not allowed to work because these jobs could be dangerous for the children. The number of working hours for the children below the age of 16 is restricted for non-agricultural operations. For agricultural operations, the children below the age of 16 are not allowed to work. This act is administered by the Employment Standards Administrators Wage and Hour division within the department of the labour in United States of America.

Exclusions from the coverage of the FLSA

An exemption from the overtime pay and the minimum wage would be given to the employees who are employed as executives, administrators, professionals not working as the employees of the sales. Certain specific jobs are excluded like the workers of the movie theatres are not entitled to overtime pay. Although as per the federal law the employees of the movie theatres should not be paid but as per the state law they need to be paid. There's a general rule which states that FLSA is not applicable if some other federal labour law governs the job.

Conclusion - As a small business, it becomes necessary for you to know how FLSA would impact your workforce. Hostenzo