Sec 370 - Human Resources Analysis

Human Resources Analysis

John Gordon

SEC/370

December 3, 2011

James Backus

Human Resources Analysis

The Fair Labor Standards Act of 1938 is a law enacted by legislatures of the United States. The Fair Labor Standards Act established a national rate for minimum wage. Fair Labor Standards Act guarantees time-and-a-half' for overtime in certain jobs, Also included in the Fair Labor Standards Act are provisions related to child labor, equal pay, and portal-to-portal activities. Nonexempt workers are allotted a minimum wage of $7.25 per hour, anything else would be unlawful. Overtime pay rates are one and a half times the regular rate of pay after 40 hours of work in a workweek. Certain employees are exempt from being paid for overtime work, including executives, managers, outside sales employees and other professionals.

Hours worked usually include the time an employee is required to be on company grounds. U.S. Department of Labor (2011) states, "Recordkeeping: Employers must display an official poster outlining the requirements of the FLSA. Employers must also keep employee time and pay records. U.S. Department of Labor (2011) also states, "Child Labor: These provisions are designed to protect the educational opportunities of minors and prohibit their employment in jobs and under conditions detrimental to their health or well-being" (p. 1).

The Michigan Overtime law is very similar to the Federal Fair Labor Standards Act (FLSA) in many ways. Maduff, A. B (2011) states, "Just like The Fair Labor Standards Act, the Michigan overtime law requires that non-exempt employees receive overtime pay equal to 1.5 x their regular hourly pay for any hours worked over 40 in a week" (p. 1). However, the Michigan law does differ from the Federal law in many ways. Under the Michigan law, Small businesses are somewhat protected from paying out overtime pay to their employees. A business with more than two or more employees may not be entitled to pay out overtime pay for its employees. This means that small business is not held to the same scope as larger complains.

Maduff, A. B (2011) states, "The Federal Law requires that the employer have a gross income of $500,000 irrespective of the number of employees" (p. 1). The rules regarding when an employer does not have to pay overtime to certain types of employees are complicated and subject to change. Many employers offer employees a set salary as way of getting around paying overtime. Employees on salary usually work over 40 hours in a week. In such cases, the employees are still entitled to overtime pay if they are non-exempt.

Employers also will incorrectly classify workers as "exempt" In an effort to avoid paying overtime wages. This is not the case for all employees; certain employees are entitled to receive overtime pay in spite of being labeled "exempt" by their employers. Miller Cohen, P.L.C. (2011) states "Computer programmers, software designers, computer specialists, Nurses, ambulance drivers, emergency medical technicians (EMTs), Employees of retail and service establishments improperly classified as managers, On-call employees, Workers labeled independent contractors" are all entitled to overtime pay even though their employer has labeled them exempt (p. 1).

Maduff, A. B (2011) states,