...History of Fair Labor Standards Act of 1938 The growth of factories in the United States around 1900, brought about what is known as sweatshops. These sweatshops usually employed the unemployable, women, children, and newly arriving immigrants. These individuals had few employment choices and were forced to accept low wages and terrible working conditions. Social advocates of the time pushed states to enact laws to protect all workers wages, allowing all employed individuals an adequate standard of living (National, 2007). In 1912, Massachusetts became the first state to mandate a specific wage for workers. By 1938, twenty-five states soon followed that lead with laws for their workers. However, the success of the wage laws was tempered by courts decisions. The U. S. Supreme Court decided that state minimum wage laws were unconstitutional. The Supreme Court stated that these laws violated employer and employee rights to negotiate fair wages. This decision made the Supreme Court one of the chief barriers to fair wages. The Supreme Court also hindered the child-labor laws. Amongst the noteworthy cases is Hammer v. Dagenhart where the Court held unconstitutional a Federal child-labor law by one vote. In 1923, the Supreme Court by a fine and small leeway invalided the District of Columbia law that establishes minimum wages for women in Adkins v. Children's Hospital. Even more devastating to the new laws in the 1930's, was the Court's decisions on societal based legislation...
Words: 922 - Pages: 4
...Fair Labor Standard Act Jamesca Caton Saint Leo University Professor Richard Primo October 11, 2015 Abstract In this paper I will discuss the background and history of the Fair Labor Standards Act and discuss the record keeping of employees that are exempt and non-exempt under Fair Labor Standard Act. Also, I will discuss the compensation and overtime pay of employees under the Fair Labor Standard Act and the enforcement of and regulations of the Fair Labor Standards Act. Moreover, I will discuss some current issues with the Fair Labor Standards Act such as child labor laws as well. BACKGROUND AND HISTORY In 1938, the Fair Labor Standards Act was passed to help put protections in place for workers across America. The act was passed after the Great Depression, at a time when many employers took advantage of the horrible working conditions and impossible hours. This act was passed to regulate minimum wage, overtime pay, equal pay, record keeping and child labor standards in the United States and to guarantee a workers right to be paid fairly under the Fair Labor Standards Act. The Fair Labor Standards Act help establish the federal minimum wage for all employees and sets requirements for overtime for employees as well. The FLSA also defines the forty hour work week for employees and places restrictions on child labor. The Fair Labor Standards Act has been amended several times to expand the law to require employees both male and female to receive equal pay for...
Words: 2145 - Pages: 9
... | | Abstract The Fair Labor Standards Act (FLSA) was designed in an effort to bring the United States out of the Great Depression, but has evolved into one of the most important legislative measures to ensure fairness for all employees. This paper highlights government’s role in the compensation as well as the main provisions of the FLSA including minimum wage, overtime, record-keeping, and child labor laws. It also illustrates real and potential costs of non-compliance. Keywords: FLSA, minimum wage, overtime, child labor laws Introduction The main objective of government’s role in compensation is to assure that procedures for determining pay are fair to all. Government intervention in the compensation process includes equal pay for both men and women when performing equal or similar jobs, eliminating exploitation of children, and safety nets for unemployment and the disadvantaged. Beginning with the creation of the Bureau of Labor in 1888, government intervention has addressed many injustices, and continues to update them as new issues arise. The purpose of this paper is to track the evolution of government’s role in the compensation process, expand on some of the more prevalent laws, and highlight class action or individual legal actions against companies that violate these regulations. History Government intervention in the labor market began in 1867 when the House of Representatives created a standing committee on labor, marking the first Federal recognition...
Words: 5815 - Pages: 24
...States there are many labor laws that the cooperate world must up hold by, these laws seem complicated but are actually quite simple once you break them down. For instance, the Fair Labor Standards Act (FLSA) of 1938, as amended, provides for minimum standard for that of both wages and overtime entitlements by employees, and spells out the administrative procedures that needs to be taken by which covered all work time must be compensated for. FLSA also includes provisions related to child labor laws, equal pay, and portal-to-portal activities (U.S. Office of Personnel Management, 2009). Most Illinois employers are covered under that of both the Federal Fair Labor Standards Act and that of the Illinois minimum wage laws. This shows that employers must comply with the laws that provide the utmost highest standards for employees. The minimum wages in Illinois is currently $8.25 an hour. In the case of Garcia vs. San Antonio Metropolitan Transit Authority states that in a five to four decision, the Supreme Court ruled that the Commerce Clause empowers the federal government to regulate the terms and conditions of employment of state workers. This reversed in the National League of Cities vs. Usery (1976), in which the courts ruled that imposing that a minimum wage requirement on that of state governments violated the Tenth Amendment, which resulted in a ruling by the states and that of the Supreme Court workers in the State of Illinois to be entitled to fair wages, overtime compensations...
Words: 1333 - Pages: 6
...vision of the company. The operation of the LLC is seen as an extension of the company’s mission and vision. The treatment and compensation extended to the employees show the value a company has in its employees. The law is in place to ensure that employers value those they employ. Employment law is something every company should review and know on the local, state, and federal level. Barbara’s Bakery, LLC are taking precautions to make sure that the company follows the employment law to the letter. In light of that, making sure that Barbara’s Bakery, LLC follows the law regarding the Fair Labor Standards Act of 1938 (FLSA) and Age Discrimination in Employment Act of 1967 (ADEA). FLSA is law put in place to established minimum wages, overtime pay requirements, and child labor laws. In regards to Barbara’s Bakery, LLC, the company wants to make sure that the Fair Labor Standards Act is followed. Upon hiring new employees to work various shifts at the bakery, the hiring manager or owner should adhere to the following guidelines: * Federal Minimum Wage is $7.25 per hour. * Overtime is to be paid at a rate of 1 ½ times over 40 work hours in a workweek * For youth...
Words: 1196 - Pages: 5
...like to focus on establishing an employment law compliance plan. Since you’re offices are already headquartered in the United States, many of the same employment laws will apply, but some wont; specifically those having to do with operating a business in Arizona. First let’s focus in on the federal employment law that are most pertinent to the establishment and operation of your new facility. Fair Labor Standards Act of 1938 The "Wages And Hours Worked: Minimum Wage And Overtime Pay" (2009) website indicates that the Fair Labor Standards Act of 1938 (FLSA) is administered by the Wage and Hour Division (WHD) establishes minimum wages, overtime pay, recordkeeping and child labor standards for employees who are paid at least $1,700 in a calendar year or work more than eight hours a week. FLSA requires that employees be paid a minimum of $7.25 an hour. This is slightly lower than Arizona’s minimum wage standard, but I’ll cover that under the Arizona specific employment laws below. It’s important to note that you must post and keep posted the minimum wage provision outlined by FLSA in conspicuous place within your facility. You’ll need to ensure that records are well kept for all nonexempt employees regarding their hours, wages, etc....
Words: 1020 - Pages: 5
...be applied to the business. The penalties for being in non-compliance with the laws will also be discussed in the memo. If a company does not follow the employment laws, there are lots of consequences that the company will face. I will be discussing four employment laws which are as follows: The Fair Labor Standards Act of 1938 (FLSA), Employee Polygraph Protection Act of 1988 (EPPA), Surface Transportation Assistance Act (STAA) and the Equal Pay Act of 1963. The Fair Labor Standards Act of 1938 (FLSA) The Fair Labor Standards Act of 1938 (FLSA) was established as a standard for minimum wages, overtime pay, child labor and recordkeeping. More than 130 million workers are affected by these standards in both the private and public sectors; these are part-time and full-time workers. Employees who work to produce goods for interstate commerce or to sell goods that have been moved or produced for interstate commerce. The Act does not cover business with less than $500,000 in annual dollar volume of business. However, businesses such as hospitals, schools, federal and local government agencies are covered no matter the amount of dollar volume of business (United States Department of Labor, n.d.). Employees who work as housekeepers, day workers, chauffeurs, and cooks and even employees who work at least $1,700 in 2009 in cash wages during a calendar year from one employer, or if more than eight...
Words: 1553 - Pages: 7
...expand their business to another state, also will provide a brief summary of each law and the consequences of noncompliance with those laws. Employment law in Michigan and Detroit are regulated by state and federal law, one of the major federal law that affects almost every organization in the United States, the Fair Labor Standards Act (FLSA) (Cascio, 2013, p. 456). The Fair Labor Standards Act (FLSA) The FLSA establishes minimum wage, overtime pay, record keeping and child labor standards covering full-time and part-time workers in the private sector and in federal, state and local government. (azleg.gov, 2013, p.3) and also is credited for the establishment of the first minimum wage in 1938 of .25 cents an hour. The FLSA covers both exempt employees (exempt from the overtime provisions of the law) and nonexempt employees (Cascio, 2013, p. 456) and these federal regulations are enforced and administred by The U.S. Department of Labor (DOL). Although both states, Michigan and Arizona, have to remain compliant with the FLSA to avoid fines and other punishments for non-compliant, they have slightly different state law in regards to employment topics covered under the FLSA such minimum wage and overtime, that the HR Directors at Clapton Commercial Construction would have to adjust to with an expansion to Arizona. Minimum Wage Law In 2007 President Bush signed legislations increasing the federal minimum wage, which is currently $7.25, in states where the state minimum wage mandates...
Words: 1294 - Pages: 6
...constituted to ensure fair treatment of employees by employers and to prevent exploitation of employees in the workplace. It is of utmost importance that these laws are completely understood by an organization not only to ensure compliance of these laws but also to create a workplace that is conducive to harness the maximum potential of employees by harboring goodwill, equity and trust between employers and the employees which in turn would lead to higher returns for the shareholders. These laws strive to provide the employees with a fair compensation for the work done, and a safe and non discriminatory workplace. Employee Laws like other laws have evolved over time to respond to the societal and organizational changes. One of the oldest and significant employment laws is the “Fair Labor Standards Act” established in 1938 to set the minimum wage and overtime pay. Another monumental employment law is the Title VII of “The Civil Rights Acts of 1964” that has resulted after a long and passionate strife for equality by Americans. The Title VII of this law deals to tackle employment discrimination on the basis of race, color, national origin, sex, religion, and retaliation. In the year 1967, another law called “The Age Discrimination in Employment Act (ADEA)” was passed to increase the set of discrimination criteria to include age. They have been followed by other very important bills like “Occupational Safety and Health Act of 1970”, “Americans with Disabilities Act of 1990”, and “Family...
Words: 2329 - Pages: 10
...562- Compensation: Strategic Perspective [ November 4, 2012 ] Dr. Richardson Abstract A majority of jobs are overseen by the Fair Labor Standards Act (FLSA), while some are not a part of the FLSA coverage by statute of the job. Others jobs are mandated by the FLSA but are considered to be exempt from the FLSA overtime rules (www.flsa.com/coverage.html). The FLSA of 1938 was put into place to addresses issues that had intensified during the depression when the United States was transitioning from one of agriculture to industrial enterprises. Exempt and non-exempt take into consideration the status of an employee in regards to their overtime pay under FLSA and if the employees position does not come under a particular category i.e. administrative, professional, and executive, then that job is considered to be covered by overtime and minimum wage provisions (Martocchio, 2011). Major Employee Groups (exempt and non-exempt) that Make up an Organization Employee groups come under two general headings, those of exempt and non-exempt. Both take into consideration the status of an employee in regards to their overtime pay under FLSA and if the employees job doesn't fall into a certain category i.e. administrative, professional, and executive, then they are generally covered by overtime and minimum wage provisions (Martocchio, 2011). The FLSA was written in order to protect workers such as those in textiles, from being required to work long hours without being compensated with...
Words: 1201 - Pages: 5
...United States Labor Movement The Labor Movement in the United States of America started in the formative years of our nation. Its purpose being to organize workers to strive for better working conditions, reasonable pay and better treatment in the workplace. From it’s beginnings in the early to mid nineteenth century during the Industrial Revolution to the modern era of today, the labor movement has fought hard forming labor parties and labor laws to give the American worker the rights they deserve. One of the earliest and more influential of labor organizations came to be in 1860; The Knights of Labor. The Knights of Labor mission was to “inform, and support working families, and to organize them to better represent their rights” (The Knights of Labor, 2011, ¶1) By the end of the 1800s the Knights had become a national fixture and included all workers into the group such as lawyers, doctors, gamblers and bankers. The main focus of the Knights of Labor were to push for an eight-hour work day; to rid child labor from existence, to do away with convict contract labor as they opposed the source of cheap labor taking jobs away from workers who needed a job; and equal pay for all their workers. In the early goings, they were opposed to the use of strikes however that trend changed and work stoppages had become a very good tool to use. The Knights of Labor had reached its apex in 1886 with over 700,000 members however their...
Words: 1736 - Pages: 7
...Explain whether Jake’s actions are in or out of “his scope of employment.” According to the definition given by USLegal.com, scope of employment refers to a person actively involved in an employment task at a particular time, usually an issue when an accident occurs, which is required to make a claim for work-related injury under state Worker's Compensation Acts (Scope of employment law & legal definitions, n.d., para.1). Workers’ Compensation reported by Terry Halbert and Elaine Ingulli, (2010) is a program which employers are required to make payments to employees who are injured during the course of their employment, regardless of negligence or fault (pp. 376). For example, based on the video, Jake, the service manager for Rally Motors, cuts his thumb while performing a complete car inspection for the customers. Although Jake was told to only perform the free oil changes by his boss, he owes a duty of care to the customers because he is a certified mechanic. He must complete the oil change and check the basic systems, such as the brakes, tires, and transmission, according to the Automotive Service Excellence (ASE) standards. As a certified mechanic, he must make sure each car is thoroughly inspected and nothing is wrong before leaving the shop. Jake’s and the company’s reputation depend upon how well he performs on the job. The benefits of carrying out the full car inspections are customer confidence, repeated business, and reduced law suits for the company. Therefore, I conclude...
Words: 971 - Pages: 4
...Limousines Employment Law Compliance Plan as the company grows, determined by the number of employees and the amount of business. Based on the information you have provided, I have including the following employment laws for Landslide Limousines Employment Law Compliance Plan that are applicable for the number of projected employees: Texas Minimum Wage Act, The Equal Pay Act, Title VII of the Civil Rights Act of 1964 (Title 7) and The Age Discrimination in Employment Act of 1967 (ADEA). I will provide a description of each of the aforementioned laws and the associated penalty for violating that law. Texas Minimum Wage Act ties the Texas minimum wage for non-exempt employees to the Federal minimum wage and automatically increases with the Federal minimum wage.(Dolghih, n.d.) The Texas Minimum Wage Act covers the employees of small businesses that are not covered by the Fair Labor Standards Act (FLSA). The FLSA will be applicable once Landslide Limousines has more than $500,000 in business. Should Landslide Limousines decide to transport passengers across state lines, the FLSA would be immediately applicable. The Texas Minimum Wage Act also requires employers to provide employees with a written statement of earnings for each pay period showing hour many hours were worked and the pay per hour...
Words: 1299 - Pages: 6
...objectives and total compensation packages in the various markets, it is important for small companies to know the differences in wages and salaries. Wages are paid to hourly employees based on the number of hours worked in a week while salaries are paid to exempt employees, executives, and those defined by the Fair Labor Standards Act of 1938. Deciding an employee’s level of monetary compensation depends on various factors. The wage should be high enough to attract qualified potential employees; the wage should in competitive with similar jobs performed in similar companies. Other considerations include: * The number of other employees capable of fulfilling the job responsibilities * The demand within the community and/or industry * Cost of living There are laws which have an impact on compensation that small companies should be aware of. The Fair Labor Standards Act (FLSA) has been amended over the years and now includes five major compensation laws which govern minimum wage, overtime pay, equal pay, child labor laws, and recordkeeping. Although not across the board, most of the FLSA regulations impact non-exempt employees. An amendment to FLSA is the Equal Pay Act of 1963, which prohibits employee compensation because of sex on similar jobs within the same company. Traditional compensation involves wage or salary...
Words: 560 - Pages: 3
...On June, 25, 1938, President Franklin Roosevelt signed the Fair Labor Standards Act (FLSA), bringing a federal minimum wage of 25 cents into effect. FLSA was written to help workers and many supporters believed it would help those that were low-income families. Originally FLSA covered 38 percent of the labor force, mostly in the manufacturing, mining, and transportation industries (Wilson, 2012). Over the decades, Congress has increased the areas of labor force such as air transport (1947), retail (1961), construction industry, public schools, farms, laundries and nursing homes (1966) (Wilson, 2012). In the most current of time FLSA covers about 85 percent of the labor force. Since FLSA inception minimum wages have been raised a total of 22 times. The current federal wage is _____, and Arizona’s current minimum wage is $8.05 per hour. Due to Proposition 202, Arizona’s minimum wage will annually increased on January 1, 2016 and so on....
Words: 402 - Pages: 2