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Handy Reference Guide to the Fair Labor Standards Act U.S. Department of Labor The Guide provides general Informs- formally adopted by thq Wage and Employment Standards Administralion Sion about the application of the Fair Hour Division and published in the Wage and Hour Division Labor Standards Act. as emended, ti Federal Register. Copies of these pub- should not be considered in the samb llcations and other information about WH Publication 1282 light es official statements of position the Act may be obtained free of contained in the regulations. Interpro- charge from the Didlsion's local Revised June ),983 relive bulletins, and other releases offices. The Fair Labor Standards Act estabtishes -- meal or rest periods, holidays off, or gross volume of sales or business minimum wage. overtime pay, record- vacations done is not less then- keelSing end child labor standards affect- -- premium pay for weekend or holiday in9 more than 50 million full-tlme and work Beginning July 101978 part-time workers. - pay raises or fringe benefits $275,000 -- a discharge notice, reason for Beginning July 1,'1980 Basic Wage Standards discharge, or immediate payment of $325.000 final wages to terminated employees Beginning January 1. 1982 'Covered nonexempt workers are entitled These and similar matters are for $382.500 to a minimum wage of not'less than agreement between the emptoyer and the $3.35 an hour beginning January 1, 1981 employees or their authorized represents- (Any retail or service enterprise which and should receive overtime pay at a rate fives, had an annual gross volume of not leu of not less than one and one-half times than $250.000 on June 30. 1978 end ' their regular rates of pay after 40 hours Who Is Covered? which later ceases to be a covered enter- prise es a result of increases in this dollar ~of work in a workweek, volume test must continue to pay its em- All employees of certain enterprises ployees at least the minimum wage in Wages required by the Act are due or the having workers engaged in interstate effect at the time of the enterprise's re- regular pay day for the pay period coy- commerce, producing goods for interstate moral from coverage, as well as overtime ered. Deductions made from wages for commerce, or handling, selling, or other* in accordance with the Act.! such items as cash shortages, merchandise wise working on goods or materials that or s~ortaiaes, etc.. are not legal to the extent have been moved in or produced for such (5) any other type of enterprise having an {hey reduce the wages of employees be- commerce by any person are covered by annual gross volume of sales or busi- Iow the minimum rate required by the the Act. Act or reduce the amount of overtime ness done of not less than S250.00D compensation due under the Act. A covered enterprise is the related The dollar volume standard mentioned activities performed through unified above in (4) and (5) excludes excise taxes Hospitals and residential care operation or common control by any pet- at the ret~il level which are separately establishments may adopt, by agreement son or persons for a common busine~ stated. with the employees, a 14~ay overtime purpose and is- period in lieu of the usual 7~lay work- (1) engaged in laundering or cleaning of Federal employees are subiect to the week, if the employees are paid at least time and a half their regular rates for clothing or fabrics; or minimum wage° overt!me° and child labor hours worked over B in a day or 80 in a (2) engaged in the buslness of construc- provisions of the Act. Employees of State sion or reco[~structlon; or and local governments are subject to the T'4-day work period° whichever is the (3) engaged in the operation of a ~ame provisions, unless they are engaged greater number of overtime hours, hospital; an institution primarily on- in traditional governmental activities. 'Fha The Act contains some exemptions from gaged in the care of the sick. the Supreme Court has indicated that such aged. the mentally ill or defective traditional governmental activities include these basic standards. Some apply to who reside on the p~emlses: a school schools° hospitals, fife prevention, police specific types of business; others apply tO for mentally or.physically handi- protection° public health, parks and specific kinds of work. capped or gifted children: a pre- recreation. While the FLSA do~$ set basic minimum school, an elementary or secondary wage and overtime pay standards and re- school; or an institution of higher Employees who are not employed in a gulates the employment of minors, there education {regardless of whether or covered enterprise may still be entitled to are a number of employment practices not such hospital, institution or the Act's mlnlmum wage. overllme pay. which the Act does not regulate. For ex- schoot is public or private or opera, and ch;Id labor protections if they are ample, the FLSA does not require: ted for profit or not for profit): or individually engaged in interstate com. (4) comprised exclusively of one or mote mtrce. These include- - vacation, holiday, severance or sick retail or service establishments {a~ la] cemmunlcation and transportation pay defined in the Act) whose annual wo~ken;