- The Fair Labor Standards Act, or FLSA, and various state laws compel payment of minimum wage, overtime compensation , and, in some cases, “prevailing wage” to certain types, or classifications, of private sector, municipal, and school system employees. Under the FLSA, payment must be made for all working time, even if it occurs while an employee is “off the clock” on breaks, or after the shift is over. State laws may require the payment of accrued vacation pay at termination/retirement. Certain “white collar” employees, although not all salaried employees, are exempted from either or both minimum wage and overtime pay requirements.
- Federal and State laws also regulate the timing and form of compensation, as well as restricting deductions and withholdings by employers and others.
- Retaliation against persons asserting rights under the FLSA and various wage-related statutes is prohibited.
- Local ordinances may require payment of a living wage. The U.S. Department of Labor, or USDOL, State and Local Agencies, such as the Indiana Department of Labor, or INDOL, the Michigan Department of Labor and Economic Growth, or MDLEG and the Ohio Department of Commerce, or ODC, and certain city and county boards and commissions, are governmental agencies which have certain powers under overtime, wage payment and prevailing wage laws and ordinances. Some may also enforce Child labor and restrictions relating to the employment of minors. They may also have responsibility for ensuring Employer recordkeeping compliance.
- Enforcement of wage-related laws and regulations commonly occurs one of two ways, either through an administrative agency claim process, or through a court action, or lawsuit (which many times may not be filed until an administrative charge has been properly filed and processed). Failure to comply with time limits, sometimes called a statute of limitations, may have adverse ramifications to employers defending against charges and lawsuits, or those asserting employee rights, irrespective of the merits, or lack thereof, of a claim.
- Enforcement actions may result in payment of backpay, frontpay or reinstatement, and, in certain cases, payment of compensatory or punitive/exemplary/liquidated damages, along with attorneys' fees.
- USDOL, INODL, MDLED, and ODC websites provide useful information for employers and employees. Some links are:
JD (Jim) Masur maintains a law practice to provide counseling and proactive guidance, and charge and lawsuit litigation services concerning various aspects of Employer-Employee wage and compensation-related issues, including wage-hour audits and employee classification review. His practice includes class-action litigation. |
