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The Fair Labor Standards Act (FLSA) covers over 130 million workers in over 7 million worksites in the United States. Passed in 1938 as part of President Franklin Roosevelt’s efforts to end the Great Depression, the law was designed to encourage employers to provide as many jobs as possible at wages an average family could live on.
The FLSA created a minimum wage and stipulated overtime pay, encouraging employers to hire more workers, rather than have fewer employees work for longer hours. 

Lately, the U.S. Department of Labor has strengthened its enforcement of the FLSA. In fact, FLSA claims numbered 5,393 in 2008, a 49% increase from 2004 figures. By early 2010, FLSA claims had surpassed other private-class actions in employment-related issues. To date, the DOL has recovered millions of dollars in back wages, including an $85-million settlement in 2010.

Wage and Hour Compliance was developed to help organizations address this compliance trend. In particular, the program reviews a key element of the FLSA that DOL investigators are keen on: misclassification of employees (exempt versus non-exempt) and the corresponding miscalculation of wages.

Helping organizations double-check their compensation practices, Wage and Hour Compliance discusses how to:

  • Perform the three "tests" to determine exemptions to the FLSA
  • Grasp a more nuanced definition of "compensation"
  • Calculate correct wages for a week, including overtime
  • Deal with on-call, off-site employees
  • Apply six criteria to identify an independent contractor
  • Comply with youth-employment restrictions
  • Avoid the wage-risks concerning "volunteers"
  • Adopt proper accounting and recordkeeping procedures
  • Avoid common employer errors

Video Synopsis: The program focuses on a key aspect of the Fair Labor Standards Act – the question of exempt and non-exempt employees, and their respective wages. It is divided into three modules. The first, Wages, defines basic compensation formulas and clarifies the definitions of “overtime” and “on-call employees.” It then discusses the criteria defining an independent contractor; reviews youth employment issues; and shows when and when not to pay volunteers.

The second section, Recordkeeping, lists the employee data that organizations must record. This also covers accounting records. The third section, Errors to Avoid, cites common employer pitfalls and the corresponding preventive measures.

Wage and Hour Compliance helps organizations review the key provisions of the FLSA, provide fair compensation, and cope with the DOL’s renewed commitment to upholding labor laws.

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