UNDERSTANDING THE FAIR LABOR ACT OF 1938 Q

UNDERSTANDING THE FAIR LABOR ACT OF 1938 Q 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 minors in “oppressive child labor. ”

WHY 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.

HOW 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.

HISTORY 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

SOME 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

TOPICS 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

TOPICS 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

TOPICS COVERED Prohibited Acts Relations to other laws Penalties Automatic Enrollment for Fines & imprisonment Damages, attorney’s fees, & termination of right of action Payment of wages & compensation Liability for Overtime Work Injunction Provision Employees of Large Employers Notice to Employees Protections for Employees Complaint procedures Separability

WHAT 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.

EXEMPTION FLOW CHART

EXEMPTIONS 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

EXECUTIVE 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

ADMINISTRATIVE 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

PROFESSIONAL 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

COMPUTER 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.

EXEMPTION 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

DEFINITIONS 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.

DEFINITIONS 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, Quality and methods of instructing Measuring and testing the learning potential and achievement of students Establishing and maintaining academic and grading standards Other aspects of the teaching program Principal and any vice-principals responsible for the operation of an elementary or secondary school Department 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

EXEMPTION 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

STANDARDS 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.

DEFINITIONS 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.

SALARY 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

STANDARDS 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

STANDARDS 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

STANDARDS 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

FREQUENTLY 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.

REFERENCE Fact Sheet #17 A: 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/fs 17 a_overview. pdf Fact Sheet #17 C: Exemption for Administrative Employees Under the Fair Labor Standards Act (FLSA). (2008). Retrieved from: https: //www. dol. gov/whd/overtime/fs 17 c_administrative. pdf Fact Sheet #17 D: Exemption for Professional Employees Under the Fair Labor Standards Act (FLSA). (2008). https: //www. dol. gov/whd/overtime/fs 17 d_professional. pdf Fact Sheet #17 G: Salary Basis Requirement and the Part 541 Exemptions Under the Fair Labor Standards Act (FLSA). (2008). Retrieved from: https: //www. dol. gov/whd/overtime/fs 17 g_salary. pdf

REFERENCE Repa, B. K. (2018). Who is covered by the Fair Labor Standards Act? Retrieved from: https: //www. nolo. com/legal-encyclopedia/freebooks/employee-rights-book/chapter 2 -2. html Scott, S. (nd). What are the benefits of the Fair Labor Standards Act? Retrieved from: http: //smallbusiness. chron. com/benefits-fair-laborstandards-act-2957. html The Fair Labor Standards Act of 1938, Amended. (2011). Retrieved from: https: //www. dol. gov/whd/regs/statutes/Fair. Labor. Stand. Act. pdf United States History (2018). Retrieved from: http: //www. u-shistory. com/pages/h 1701. html