Fair Labor Standards Act

Certain types of employees are required to be paid a minimum hourly rate for all work performed up to 40 hours per week. Failure to pay that minimum rate is a violation of federal law. Similarly, those same types of employees are required to be paid at least time and one-half of their regular rate of pay for all hours worked in excess of 40 per week. Employees cannot waive their rights under this law. It is important to keep in mind that just because an employee is designated as a manager or supervisor and/or is paid on a salary basis does not mean that the employee is exempt from minimum wage or overtime compensation. In determining whether an employee is entitled to the statutorily required minimum wage and/or overtime compensation, the law looks at the actual job functions performed by the employee, not exclusively the employee’s title or compensation. Independent contractors are not covered by this law. Whether or not a person is an employee or independent contractor for purposes of this law is also determined by looking at the circumstances surrounding the relationship between the individual and the company, and not just a designation of a person as an independent contractor.