Compensation Law
The goal of this paper is to explain a law and/or regulation applicable to compensation (Fair Labor Standards Act and Equal Pay Act). The following paragraphs will discuss the selected law(s) related to compensation and the implications for an organization.
Fair Labor Standards Act
Definition
The Fair Labor Standards Act (FLSA) is a federal law that was enacted in 1938. Amendments have been made to this law since it was passed. It establishes the 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 (McKay, 2008).
FLSA and Its Coverage
Employees can be covered by the FLSA in two ways: (1) enterprise coverage ? the FLSA covers those employees who work for companies or organizations having two or more employees and doing at least $500,000 a year in business, or hospitals, businesses providing medical or nursing care for residents, schools and preschools, and government agencies; and (2) individual coverage ? the FLSA also protects employees if their work regularly involves them in commerce between states. This can include producing goods to be shipped out of state, regularly traveling to other states for their jobs, and doing janitorial work in buildings where goods are produced for shipment outside the state. The FLSA also covers domestic service workers (McKay, 2008).
FLSA and Minimum Wage
Effective July 24, 2007, the minimum wage is $5.85 per hour; as of July 24, 2008 it will be $6.55 per hour and on July 24, 2009 it will jump to $7.25 per hour. Some states have set their own minimum wage, in which case an employer must pay a worker the higher of the federal or state minimum wage (McKa ...