Wage and Hour Laws in US Employment

Under federal law, most private employers should follow the current minimum wage of $7.25 per hour and pay their employees with overtime pay after working more than 40 hours in a week.

According to Los Angeles lawyers, overtime pay is worth one-and-a-half times the amount of a worker’s hourly rate.

Covered Employers

Under the Fair Labor Standards Act (FLSA), the minimum wage requirement applies to all companies which have at least $500,000 annual sales.

However, businesses which do not reach this threshold but are engaged in “interstate commerce” are still covered by this law.

Courts usually interpret “interstate commerce” as the transfer goods from one state to another, making interstate communication, and giving or receiving mails from another state.

Employers should also consider the state employment law that oversees the minimum wage. For example, the wage requirement in California is $8 per hour which is higher than the federal wage.

In this case, employers should follow the law that is more favorable to their workers. This provision just shows that the US is a pro-labor society.

Exempted workers

Under federal law, executive, administrative, and professional employees who perform duties which require a high-level decision and advanced education are not covered by overtime pay.

The US Department of Labor defines an executive as someone who earns at least $455 every week, hires and promotes workers, supervises two or more workers, and manages a business operation.

The overtime law also excludes domestic helpers, casual baby-sitters, seamen, farmers, some media practitioners, computer professionals who earn at least $27.63, outside sales people, switchboard operators, investigators, mechanics, workers employed by seasonal and recreational establishments, independent contractors, and newspapers deliverers.

Employees who receive tips from customers

Under federal law, employers can pay their workers with $2.13 hourly rate if the latter routinely receive tips at least $30 every month. Employers should make sure that the amount they pay and the tips their workers get from the customers would reach the minimum wage requirements.

This is not the case in some states such as California. According to Los Angeles lawyers, the state does not allow employers to pay tipped workers with less than the minimum wage.

Wage and hour disputes

If employers violated the wage law, workers can file their complaints before the Division of Labor Standards.

However, workers must file wage claims within two years after the violation if their complaints are based on oral agreement or within four years if it involves written contract.

If the complaints involve unpaid overtime, violation of minimum wage, and other statutory claims, workers should file their case within three years after the violation has occurred.

Examples of wage claims

• Unpaid final paycheck
• Unused vacation hours the employers failed to pay upon the termination of employment
• Unauthorized deductions from paychecks
• Employer’s failure to reimburse work-related expenses
• Employer’s not providing meal and rest period stated on the Industrial Welfare Commission Order
• Wages paid through check with insufficient funds