LIN's Franchising Business & Law Alert: Important Issues and Recent Developments in Wage and Hour Law
Amy K. Jordan, a Birmingham-based Partner, authored an article titled, "Important Issues and Recent Developments in Wage and Hour Law," for LIN's Franchising Business & Law Alert in May 2014.
Although it was enacted over 75 years ago, the Fair Labor Standards Act (FLSA; http://1.usa.gov/1eE91Yo) 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. This article examines important legal and political developments affecting the FLSA and how they develop into the most commonly litigated employment claims in American federal courts.
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