What You Must Know As An Administrator N Kristina Leyva Ed S What is The Fair labor act of 1963 FLSA is a United States labor law that creates the right to minimum wage and time and a half overtime pay when people work over 40 hours a week It also prohibited most employment of min ID: 801590
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Slide1
Understanding the Fair Labor act of 1938q
What You Must Know As An Administrator
N. Kristina Leyva, Ed. S
Slide2What is The Fair labor act of 1963?
FLSA is a United States labor law that creates the
right
to minimum wage and “time and a half” overtime pay when people work over 40 hours a week. It also prohibited most employment of minors in “oppressive child labor.”
Slide3Why is flsa important?
The FLSA is important because it demonstrates to an administrator what must be done in order to be in compliance with employment laws that affect the pay of an employee and ensures a fair work environment.
Without the act it would be difficult to regulate the work practices of some employers and there would be no recourse for employees to file complaints about their companies.
Slide4How does it apply to education?
There are specific items within the FLSA that directly affects support staff, teachers, and administrators. As an administrator you need to be aware of these items in order to not break any laws or cause financial issue within your building.
Slide5HISTORY OF FLSA
Was passed in 1938 just after the end of the Great Depression
Employers were taking advantage of the tight labor market
Forced workers to work for minimal pay, in horrible conditions, with impossible hours
It
is full of exceptions and exemptions
It has been amended multiple times
Slide6Some amendments include
The requirement of equal pay between males and females for work that requires equal skill, effort, and responsibility.
Protections of state and local hospitals and educational institutions
Creating strict standards for determining pay, compensatory time, time off work instead of cash
And establishing requirements of how and when employees must be paid for overtime
Slide7Topics covered
Administration
Creation of wage & hour division
Appointment, selection, classification, & promotion of employees
Minimum Wage
Commerce
Prohibition of sex discrimination
Contract services
Newly hired under age 20
Maximum Hours
Employees of interstate commerce
Definition of regular rate
Irregular work hours
Employment in a hospital or place of care
Employment of fire or law protection
Employment of domestic services
Compensatory time
Slide8Topics covered
Wages in Puerto Rico & the Virgin Islands
Data Collection
Investigations & inspections
Records
Child Labor Provisions
Investigations & inspections
Oppressive child labor
Proof of age
Exemptions
Minimum wage & maximum hour requirements
Child labor requirements
Delivery of newspapers & wreath making
Employment in retail & agriculture
Learners, Apprentices, & Messengers
Handicapped
Employment by schools
Slide9Topics covered
Prohibited Acts
Penalties
Fines & imprisonment
Damages, attorney’s fees, & termination of right of action
Payment of wages & compensation
Liability for Overtime Work
Injunction Provision
Relations to other laws
Automatic Enrollment for Employees of Large Employers
Notice to Employees
Protections for Employees
Complaint procedures
Separability
Slide10What is specific for you?
There are parts of FLSA that are specific to education and must be known by administrators in order to perform their job and not break any laws.
Slide11Exemption flow chart
Slide12Exemptions for Executive, administration, profession, computer, & outside sales employees
The FLSA requires that most employees be paid at least the federally mandated minimum wage for hours worked and overtime pay for hours worked over the standard 40 hour work week, EXCEPT
…
When employees are bona fide executive, administrative, profession, or outside sale employees.
Members of this category must meet certain tests regarding their job duties and are paid on a salary basis of not less than $455 per week
Slide13Executive STANDARDS
Employee must be salaried at no less than $455 weekly
Primary duties must be the management of an enterprise or managing a recognized department or subdivision of an enterprise
Must regularly direct the work of two or more full-time employees
Must have the authority to hire or fire other employees
Superintendents
Principals
Assistant Principals
Slide14Administrative STANDARDS
Employee must be salaried at no less than $455 weekly
Primary duty must be the performance of office or non-manual labor directly related to management or general business operations of their employer
Primary duty includes the exercise of discretion and independent judgment with respect to matters of significance
Directors
Department Heads
Counselors
Slide15Professional STANDARDS
Employee must be salaried at no less than $455 weekly
Primary duty must be the performance of work requiring advance knowledge, defined as work which is predominately intellectual in character and includes work requiring the consistent exercise of discretion and judgment
Must have advance knowledge in a field of science or learning
Must have advance knowledge customarily acquired by a prolonged course of specialized intellectual instruction
Teachers
Slide16Computer employee STANDARDS
To qualify for the computer employee exemption, the following tests must be met:
The employee must be compensated
either
on a salary
no less
than $
455
per week
or
on an hourly basis, at a rate not less than $27.63 an hour;
The employee must be employed as a computer systems analyst, computer programmer, software engineer or other similarly skilled worker in the computer field performing the duties described below;
The employee’s primary duty must consist of
:
The
application of systems analysis techniques and procedures, including consulting with users, to
determine
hardware, software or system functional specifications
;
The
design, development, documentation, analysis, creation, testing or modification of computer
systems
or programs, including prototypes, based on and related to user or system design
specifications;
The
design, documentation, testing, creation or modification of computer programs related to
machine
operating systems;
or
A combination of the aforementioned duties, the performance of which requires the same level of
skills
.
Slide17Exemption for administrative employees
The FLSA requires that most employees be paid at least the federally mandated minimum wage for hours worked and one-half the regular rate of pay for all hours worked over the 40 hour work week, EXCEPT
…
When employees are bona fide executive, administrative, profession, or outside sale
employees
Members of this category must meet certain tests regarding their job duties and are paid on a salary basis of not less than $455 per week
The employees primary duty includes exercising discretion and independent judgment in matters of significance
Slide18Definitions
Primary duty:
the main duty the employee performs
Directly related to Management or General Business Operations
: an employee must perform work directly related to the running or service of a business; function areas could include finances, marketing, personnel management, human resources, publications, etc.
Discretion & Independent Judgment:
an employee must have the authority to make an independent choice, free from immediate direction or supervision.
Matters of Significance
: the level of importance or consequence of work performed. An employee does not exercise discretion and independent judgment simply because they will experience a financial loss.
Slide19Definitions
Educational Establishments & Administrative Functions:
The administrative exemption is also available to employees
on
a salary
no
less than $
455
a
week, or on a salary basis which is at least equal to the entrance salary for teachers in the same educational
establishment.
primary
duty is performing administrative functions directly related to academic instruction or training in an educational establishment.
Academic
administrative functions include operations directly in the field of
education.
Employees
engaged in academic administrative functions include: the superintendent or other head of an elementary or secondary school system, and any assistants responsible for administration of such matters as
Curriculum,
Q
uality
and methods of
instructing
M
easuring
and testing the learning potential and achievement of
students
E
stablishing
and maintaining academic and grading
standards
O
ther
aspects of the teaching
program
P
rincipal
and any vice-principals
responsible
for the operation of an elementary or secondary
school
D
epartment
heads in institutions of higher education responsible for the various subject matter departments; academic counselors and other employees with similar responsibilities.
Having
a primary duty of performing administrative functions directly related to academic instruction or training in an educational establishment
Slide20exemption for professional employees
The FLSA requires that most employees be paid at least the federally mandated minimum wage for a hours worked and one-half the regular rate of pay for all hours worked pas ta 40 hour work week, EXCEPT
…
Employees identified as executive, administrative, professional, and outside sales employees
In order for an exemption to apply must meet certain standards
Slide21standards
Learned Professional Exemption
To qualify for the learned professional employee exemption, all of the following tests must be met:
The employee must be compensated on a salary or fee basis (as defined in the regulations) at a rate not less than $455* per week;
The employee’s primary duty must be the performance of work requiring advanced knowledge, defined as work which is predominantly intellectual in character and which includes work requiring the consistent exercise of discretion and judgment;
The advanced knowledge must be in a field of science or learning; and
The advanced knowledge must be customarily acquired by a prolonged course of specialized intellectual
instruction
.
Slide22Definitions
Work Requiring Advanced Knowledge:
work which is primary intellectual in character and includes the consistent use of discretion and judgment.
Field of Science or Learning:
include law, medicine, theology, accounting, teaching, and other occupations that are distinguishable form the mechanical or trade skills where knowledge is fairly advance.
Customarily Acquired by a Prolonged Course of Specialized Intellectual Instruction:
where specialized academic training is a standard requirement for employment, best represented by an academic degree.
Teachers
: primary duty includes teaching, tutoring, instructing, lecturing or imparting knowledge in an educational establishment.
Slide23Salary basis requirements and the part 541 exemptions
The FLSA requires that employees be paid the federally mandated minimum wage for all hours worked and overtime pay and one half the regular rate for all hours worked past the 40 hour work week, EXCEPT
…
The employee is hired as an executive, administrator, professional, or an outside sales employee
Employee meets certain tests regarding job duties
Employee is paid on salary of no less than $455 weekly
Slide24standards
Salary Basis Requirements
Employee must be salaried at $455 weekly
Salary requirement do not apply to outside sales, teachers, and employees practicing law or medicine
Exempt computer employees may be paid $455 weekly or on an hourly basis at no less than $27.63
Predetermined salary cannot be reduced for any reason related to quality or quantity of an employees work
Slide25standards
Circumstances in Which the Employer May Make Deductions from Pay
Deduction are permissible when the exempt employee
Is absent from work for one or more full days for personal reasons other than sickness or disability
Is absent for one or more full days due to sickness or disability if the deduction is made in accordance with policy or practice proving compensation for salary lost due to illness
To offset amounts employees receive as jury or witness feels
For military pay
Penalties imposed for infractions
Unpaid disciplinary suspension for one or more full days
Slide26standards
Effects of Improper Deductions from Salary
Employers will lose exemption if they have a practice e of making improper deduction from employees salaries, which includes:
The number of improper deductions in comparison to the number of employee infractions
The time period during which the employer made improper deductions
The number and geographic location of both the employees whose salary was improperly deduced and the manager responsible
Whether policy was clearly communicated to employees that described the permitting of or prohibiting of deductions
Slide27Frequently asked questions
Are school districts required to pay overtime to employees such as secretaries who work past a 40 hour work week?
YES
Do you have to pay a certified employee minimum wage for extra curricular activities if it is a requirement of the district for employment?
NO
Do you have to pay certified employees minimum wage for extra duties required by a school district such as ticket taking, score keeping, etc.?
NO
…
unless, such activity of employees time exceeds 20% of their total hours for that specific work week.
Slide28Reference
Fact Sheet #17A: Exemption for Executive, Administrative, Professional, Computer & Outside Sales Employees Under the Fair Labor Standards Act (FLSA
). (2008).
Retrieved from: https://www.dol.gov/whd/overtime/
fs17a_overview.pdf
Fact
Sheet #17C: Exemption for Administrative Employees Under the Fair Labor Standards Act (FLSA
). (2008). Retrieved from
: https://www.dol.gov/whd/overtime/
fs17c_administrative.pdf
Fact Sheet #17D: Exemption for Professional Employees Under the Fair Labor Standards Act (FLSA
).
(2008). https://www.dol.gov/whd/overtime/
fs17d_professional.pdf
Fact Sheet #17G: Salary Basis Requirement and the Part 541 Exemptions Under the Fair Labor Standards Act (FLSA
). (2008).
Retrieved from: https://www.dol.gov/whd/overtime/fs17g_salary.pdf
Slide29Reference
Repa, B. K. (2018). Who is covered by the Fair Labor Standards Act?
Retrieved from: https://www.nolo.com/legal-encyclopedia/free-books/employee-rights-book/chapter2-2.html
Scott, S. (nd). What are the benefits of the Fair
L
abor Standards Act?
Retrieved from: http://smallbusiness.chron.com/benefits-fair-labor-standards-act-2957.
html
The Fair Labor Standards Act of 1938, Amended. (2011).
Retrieved from: https://www.dol.gov/whd/regs/statutes/
FairLaborStandAct.pdf
United States History (2018).
Retrieved from: http://www.u-s-history.com/pages/h1701.
html