The Fair Labor Standards Act (FLSA) and Overtime Pay

The Fair Labor Standards Act (FLSA) is a federal law that establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in federal, state, and local governments. Here are the key points regarding the FLSA and overtime pay:

Overtime Pay Requirements

Eligibility:

• Under the FLSA, non-exempt employees must receive overtime pay for hours worked over 40 in a workweek.
• Overtime pay is calculated at one and a half times the employee's regular rate of pay​.

Regular Rate of Pay:

• The regular rate of pay includes all earnings for employment, such as hourly wages, salaries, commissions, and certain bonuses. The regular rate cannot be less than the minimum wage.
• To calculate the regular rate for salaried employees, divide the total weekly salary by the number of hours the salary is intended to cover​.

Exempt vs. Non-Exempt Employees:

• Exempt employees are not entitled to overtime pay. Exempt categories include executive, administrative, professional, computer employees, and outside sales employees who meet specific criteria related to job duties and salary levels.
• Non-exempt employees are entitled to overtime pay. As of 2020, employees earning less than $684 per week ($35,568 annually) are generally considered non-exempt​.

Calculation of Overtime:

• For employees with fluctuating work hours, the regular rate can vary each week, impacting the overtime calculation. The regular rate is the total compensation divided by the total hours worked.
• Overtime must be paid on the regular rate, which includes all compensable time​.

Enforcement and Compliance

• The U.S. Department of Labor’s Wage and Hour Division (WHD) enforces the FLSA. Employers found violating the overtime provisions can be required to pay back wages and may be subject to fines and penalties.
• Employees can file a complaint with the WHD if they believe they have been improperly denied overtime pay. The WHD may investigate and take action on behalf of the employee​.

Recent Developments

• The classification of workers (employee vs. independent contractor) is a significant issue under the FLSA. Changes in regulations and court decisions can affect who is entitled to overtime pay​.
• Proposed changes by the Department of Labor may impact how workers are classified and the criteria for overtime eligibility, potentially increasing the number of workers eligible for overtime pay​.



Alabama

Alabama adheres to the federal Fair Labor Standards Act (FLSA) for its wage and overtime laws. Here are the key aspects of Alabama law concerning wages and overtime:

Minimum Wage

• Federal Minimum Wage: Alabama does not have its own state minimum wage law. Therefore, the federal minimum wage applies, which is currently $7.25 per hour as stipulated by the FLSA.

Overtime Pay

• Federal Overtime Rules Apply: Alabama follows the federal regulations set by the FLSA regarding overtime. Non-exempt employees are entitled to overtime pay at a rate of one and a half times their regular rate for any hours worked over 40 in a workweek​ (Alabama Department of Labor)​​.

Worker Classification

• Exempt vs. Non-Exempt: Like the federal law, Alabama classifies workers as exempt or non-exempt based on their job duties and salary. Exempt employees typically include those in executive, administrative, professional, and certain computer-related positions. Non-exempt employees are eligible for overtime pay​.

Recordkeeping

• Employer Obligations: Employers in Alabama must keep accurate records of hours worked and wages paid to employees. This includes maintaining time records and proof of age for workers under 18 as per child labor laws​ (Alabama Department of Labor)​​.

Child Labor

• Child Labor Laws: Alabama has specific regulations regarding the employment of minors. Employers must obtain child labor certificates and adhere to restrictions on the number of hours and times of day that minors can work​ (Alabama Department of Labor)​.

Enforcement

• Wage and Hour Division: The U.S. Department of Labor's Wage and Hour Division (WHD) enforces wage and overtime laws in Alabama. Employees who believe their rights have been violated can file a complaint with the WHD for investigation​ (Alabama Department of Labor)​​​.
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For more detailed information, you can refer to the Alabama Department of Labor and the U.S. Department of Labor’s Wage and Hour Division websites:

• Alabama Department of Labor
• U.S. Department of Labor - Wage and Hour Division

These resources provide comprehensive guidance on wage and overtime regulations, worker classification, and child labor laws in Alabama. Contact The Justice Law Firm, LLC today for a FREE consultation.