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Chapter_14 - CHAPTER 14 EMPLOYMENT Fair Labor Standards Act...

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CHAPTER 14: EMPLOYMENT Fair Labor Standards Act Discrimination Americans with Disabilities Act Verification of Employment Status Resume Fraud Occupational Safety and Health Admin. Unions
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Fertile Ground for Lawsuits Hour and wage Discrimination (including harassment) Illegal documentation fines Worker safety Labor disputes Workers compensation
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Fair Labor Standards Act Federal legislation adopted in 1938 and amended many times thereafter Originally intended to eliminate unfair methods of compensation and labor conditions Requires minimum wage, overtime, equal pay for equal work, restricts child labor
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Minimum Wage Businesses engaged in interstate commerce are subject to the federal minimum wage - $6.55/hr effective July 2008 (book says $5.15 as of April 2007). Congress may adjust as it sees fit from time to time States must have minimum wage more than federal standard – CA $8.00, SF $9.36 and in 2009 will increase to $9.79. Low wage exception – employers with annual revenues of less than $500,000.
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CA Minimum Wage History January 1, 2008 $8.00 January 1, 2007 $7.50 January 1, 2002 $6.75 January 1, 2001 $6.25 March 1, 1998 $5.75 September 1, 1997 $5.15 March 1, 1997 $5.00 October 1, 1996 $4.75 July 1, 1988 $4.25 January 1, 1981 $3.35 January 1, 1980 $3.10 January 1, 1979 $2.90 April 1, 1978 $2.65 October 18, 1976 $2.50 March 4, 1974 $2.00 February 1, 1968 $1.65 August 30, 1964 $1.30 August 30, 1963 $1.25
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Brock v. Best Western Issue – Should motel and restaurant be considered one business for the purpose determining revenues for application of minimum wage laws. Both businesses were under common control with overlapping operations – shared facilities, employees, advertising, etc. Holding – same business. Therefore, combine revenue to determine if minimum wage law applies. Geographic separation will make a difference in outcome of analysis.
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Tip Exception to Minimum Wage CA does not allow tip credit Applies to employees who routinely receive at least $30/mo in tips. Exception allows employers to credit tips (averaged per hour) towards minimum wage. Employer just has to pay a percentage of minimum wage ($2.13/hr.). Federal law allows tip pooling to determine hourly credit. Other statues prohibit tip pooling to reduce pay.
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Training Wage Exception to Minimum Wage Allows employers to pay new workers between the ages of 16-19 85% of the minimum wage for up to 90 days. Thereafter, employer must pay minimum wage. Only applies to employees entering the work force for the first time.
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Overtime Pay Fair Labor Standards Action requires employers to pay 1 ½ times their regular wage four hours in excess of 40/week Executive, professional, and administrative employees are exempt from overtime requirement. Two general rules to apply: 1. Salary and duties test 2. Employees paid an hourly wage are NON-exempt, regardless of their duties.
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Executive Employees Must receive salary of at least $455/week Primary duties must include managing the business, department or other subdivision.
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