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Wage Hour Laws Provide Traps for the Unwary

By Mark Blondman and Brooke Iley
March 26, 2007

It has often been said that the most frequently violated federal employment-related statute is the Fair Labor Standards Act ('FLSA'), 29 U.S.C. ” 201-19 (Supp. 2006). This law, enacted in 1938, regulates, among other things, the payment of overtime to employees who work for employers. Our experience indicates that most, if not all, employers do not intend to violate the provisions contained in the FLSA but, instead, do so out of ignorance of its requirements. This article highlights some of the key provisions of the FLSA, makes reference to recent pronouncements by the United States Department of Labor (the federal agency principally responsible for interpretation of the statute) and presents advice on how to avoid the pitfalls inherent in the FLSA.

Collective Action Lawsuits

As a general rule, the FLSA mandates that all employees must receive payment of time and one-half their regular hourly rate for all hours worked over forty (40) in a work week. However, the statute recognizes that individuals working in certain job categories who perform defined duties are exempt from the overtime provisions ' in other words, are not entitled to extra pay for hours worked in excess of forty (40). Whether an employee is exempt from the overtime provisions of the FLSA depends entirely on whether the employee's actual job meets the statutory and regulatory requirements for the exemption (as well as, in many cases, whether the individual is paid on a salaried ' as opposed to hourly ' basis).

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