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Important Issues and Recent Developments in Wage and Hour Law

By Amy K. Jordan
May 02, 2014

Although it was enacted over 75 years ago, the Fair Labor Standards Act (FLSA) still serves the two primary purposes it had when it was enacted: It requires employers to pay employees a minimum wage, and it requires employers to pay employees whose job duties do not place them within any exemption from overtime compensation at a rate of one-and-a-half times their regular rate of pay for hours worked over 40 in a single workweek. Of course, like most federal employment laws, exceptions, clarifications and confusion abound.

Few employers truly understand the FLSA's technical requirements, and even fewer grasp the broad exposure these comprehensive regulations create. Indeed, the Department of Labor (DOL) estimates that only 20%-40% of employers are in complete compliance. FLSA violations can be costly, and wage and hour litigation has rapidly expanded in recent years and continues to build momentum.

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