Protecting Employee Rights Under the Fair Labor Standards Act (FLSA) with Jaffer Law
The Fair Labor Standards Act (FLSA) is a critical federal law designed to protect workers from unfair labor practices. It establishes minimum wage, overtime pay eligibility, recordkeeping requirements, and youth employment standards. However, many employers violate these regulations, often to the detriment of employees. Jaffer Law is dedicated to helping employees fight for their rights and secure the compensation they deserve.
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Which Employers Are Covered by the FLSA?
The FLSA applies to employers engaged in interstate commerce, which includes most businesses. Specifically, it covers:
- Private sector businesses with at least $500,000 in annual revenue.
- Hospitals, schools, and government agencies, regardless of revenue.
- Employers who handle goods or materials that have moved in interstate commerce.
Exempt vs. Non-Exempt Employees
Understanding the classification of employees is crucial in determining their rights under the FLSA:
- Non-Exempt Employees: Must be paid at least the federal minimum wage and receive overtime pay at a rate of one and a half times their regular hourly rate for hours worked over 40 in a workweek.
- Exempt Employees: These employees are known as “exempt” employees. To be considered “exempt,” these employees must generally satisfy three tests:
- Salary-Level Test: Employers must pay employees a salary of at least $684 per week ($35,568 per year) to qualify for the executive, administrative, and professional employee exemptions.
- Salary-Basis Test: With very limited exceptions, the employer must pay employees their full salary in any week they perform work, regardless of the quality or quantity of the work.
- Duties Test: The employee’s primary duties must meet certain criteria. Administrative employees must primarily perform office or non-manual work related to management or general business operations and exercise discretion and independent judgment on significant matters. Professional exemptions apply to jobs requiring advanced knowledge in fields such as law, medicine, and education, typically requiring specialized degrees.
- Highly Compensated Employee Test:: The FLSA also provides an exemption for highly compensated employees. To qualify, an employee must earn at least $107,432 per year, including at least $684 per week on a salary basis. Unlike other exemptions, employers can count commissions, nondiscretionary bonuses, and other nondiscretionary compensation toward this total, with no 10% cap. As long as the employer meets these salary requirements, additional forms of compensation can be used to satisfy the annual threshold.
Common Violations of the FLSA
Many employers attempt to circumvent FLSA requirements, resulting in wage theft and labor law violations. Some of the most common violations include:
Misclassification of Job Duties as a Manager
Employers sometimes misclassify employees as “managers” or “executives” to avoid paying overtime wages. If an employee’s job primarily consists of non-managerial tasks, they may be misclassified and entitled to overtime pay.
Failure to Pay Overtime
Non-exempt employees must receive overtime pay at a rate of 1.5 times their regular wage for all hours worked beyond 40 in a workweek. Some employers try to avoid paying overtime by:
- Requiring off-the-clock work.
- Paying straight time for overtime hours.
- Manipulating timesheets to underreport hours worked.
Failure to Maintain Accurate Records
Employers are required to maintain accurate records of employees’ work hours and wages. Failure to do so is a violation of the FLSA and can impact an employee’s ability to recover unpaid wages.
Misclassification of Employees as Independent Contractors
Some businesses misclassify workers as independent contractors to evade paying minimum wage, overtime, and benefits. However, if an employer exercises significant control over a worker’s duties, they may be legally considered an employee and entitled to FLSA protections.
Failure to Pay Minimum Wage
The FLSA requires employers to pay employees at least the federal minimum wage, which is currently set at $7.25 per hour. Employers who fail to pay employees at least this amount are in violation of the law. Common violations include:
- Paying below the minimum wage through illegal deductions.
- Failing to compensate employees for all hours worked.
- Improperly classifying employees as exempt from minimum wage requirements.
Employees who have been paid less than the required minimum wage are entitled to recover the difference, along with additional damages.
Remedies and Recoveries Under the FLSA
Employees who have been subjected to FLSA violations can seek various remedies, including:
- Unpaid Wages: Recovery of unpaid minimum wages and overtime wages owed.
- Liquidated Damages: An amount equal to the unpaid wages as compensation for the delay in payment.
- Attorney’s Fees and Costs: The employer may be required to pay for the employee’s legal expenses.
- Injunctive Relief: Court orders requiring the employer to comply with FLSA regulations moving forward.
Retaliation Protections
The FLSA prohibits employers from retaliating against employees who assert their rights under the law. Retaliation can take various forms, including:
- Termination or demotion.
- Reduction in hours or pay.
- Workplace harassment or discrimination.
Employees who face retaliation for reporting wage violations can file a retaliation claim, which may result in reinstatement, lost wages, and additional damages.
How Jaffer Law Can Help
Jaffer Law is committed to standing up for employees whose rights have been violated under the FLSA. Our experienced legal team can:
- Evaluate whether you have been misclassified or unlawfully denied overtime pay.
- Investigate employer payroll and recordkeeping violations.
- File claims for unpaid wages and damages.
- Represent you in litigation to secure fair compensation.
If you believe your employer has violated the FLSA, do not hesitate to seek legal assistance. Contact Jaffer Law today for a consultation and take the first step toward protecting your rights and recovering what you are owed.