Please enter something
Fair Labor Standards Act Analysis Essay Example
Fair Labor Standards Act Analysis Essay Example

Fair Labor Standards Act Analysis Essay Example

Available Only on StudyHippo
  • Pages: 5 (2219 words)
  • Published: October 26, 2018
  • Type: Essay
Text preview

To begin with, Fair Labor Standards Act abbreviated FLSA when mentioned or rather used in any business context, it brings about the protection of employees under the law. As a matter of fact, the Fair Labor Standards Act (FLSA) establishes guidelines related to minimum wage, overtime pay, record-keeping, and child labor. Altogether, it is within the provisions of this law of which it is a US federal law of 1938 that the minimum wages of the employees are set, overtime pay, record-keeping, and child labor (Whittaker, 2003).In line with this, there is the 1995 Auto Corporation based in central Colorado which is a family-run manufacturing business. The company manufactures emergency lighting systems for first-responder vehicles (police cars, ambulances, fire trucks) in the emergency services industry. Currently, the organization consists of a production facility which currently has 88 unionized production employees, and two administration offices which have 22 non-union employees.1995 Auto Corp.

is in the process of opening a production facility in Toledo, Ohio which will have 31 non-union employees. 1995 Auto Corp. has been operating as a sole proprietorship by R. Shaffer for 18 months. Having provided a brief background of 1995 Auto Corporation, it is important to bring into view the fact that the company has some problems In regard to labor and employment law. As the HR legal consultant contracted to review all HR policies, I intent to solve the existing management practices in order to minimize the risk of unfair labor practice charges which can lead to litigation and investigations and hearings with

...

the National Labor Relations Board (NLRB).Interestingly enough, there are some issues of concern that need to be addressed in regard to practices of 1995 Auto Corp. As such, I have noted that 1995 Auto Corp.

has classified many of its non-production positions as "exempt". This means that the employees have no right under FLSA to be paid on overtime. Following this point, I am concerned with legal exposure, and union challenges that may result from inaccurate classifications, along with poor tracking of hours worked for the purpose of paying overtime. In this regard, it is important to bring into the context the key components of the FLSA overtime requirements, considering the legal distinction between "exempt" and "non-exempt" employees (Whittaker, 2003).Principally, FLSA has provided guidelines on how to deal with issues of overtime. However, 1995 Auto Corp. seems to have not yet assimilated the whole issue. It is within the provisos of FLSA that the overtime has been explained.

In this sense, the Act requires that most workers receive overtime pay at one and half times the employee's regular pay rate for all hours worked over 40 hours in a seven day week. Along with this, the employees should be paid the federal minimum wage just as FLSA requires. In correspondence to overtime, it should be established whether a position that has been classified as overtime eligible or exempt is in compliance with the provisions of FLSA. Again in this context, the requirements of the payments of overtime are defined by FLSA among other such related aspects of overtime issue. Legal distinction between "exempt" and

View entire sample
Join StudyHippo to see entire essay
View entire sample
Join StudyHippo to see entire essay

"non-exempt" employees has been in a way violated (Business & Legal Reports, Inc., 2006). Before digging too much into the state of affairs in the company regarding overtime, it is important to bring into context the legal definitions of "exempt" and "non-exempt". In this case, the term exempt when used brings about the meaning that such employees do not have to be paid overtime even when they have worked more than 40 hours a week.

Instead such employees are paid salaries.Following this legal definition, FLSA provides that the members of this class have distinct responsibilities in the organization. They consist of those employees who hold a bona fide executive, administrative, or professional position.More to this point, they cover other employees such as the ones in the capacity of academic administrative personnel among others. On the other hand, the non-exempt employees in relation to overtime payment are those employees who are entitled to an overtime payment as it is required within the dictates of FLSA (Business & Legal Reports, Inc., 2006). If someone is non-exempted from FLSA it means that he or she is supposed to be paid once he works for more than 40 hours a week. It is of great importance to note that the overtime in this context means work that has been done hourly by the employees beyond the limits of the regular work hours per week.

This is to suggest that for any kind of work that is done by an hourly worker is considered as overtime. So to articulate, overtime compensation is made provision of under the federal Fair Labor Standard Act of 1938.Notably, 1995 Auto Corp. has classified most of its non-production positions as "exempt." This is to suggest that the non-production employees who are in other words supposed to be "non-exempt" have been unfairly treated by being exempted when the kind of employees highlighted are the ones that are supposed to be exempted instead. As a matter of fact, I am concerned of the factor that 1995 Auto Corp.'s ability to classify employees as "exempt" or "non-exempt" in relation to the payment of overtime. In this connection, the 1995 Auto Corp.

's ability has been presented as one of the unfair treatment of the non-production positions.Under the requirements of FLSA, not all the employees should be exempted apart from those that are in the most part doing more of management roles. By exempting the non-production positions, it means that, such individuals have not been treated according to the law and as such, they are not protected under it. This also suggests that the company may be playing to avoid paying more money when people work overtime at the same time making them to overwork without payment (Sciotti, 2004). If this is not well handled, it may lead to court investigations and hearings regarding overtime payment a case that can really cost the company as well as its future if it may be said. Above and beyond, the point at which the overtime is paid with regard to hours worked is when one has worked over 40 hours a work. This means that any hour

View entire sample
Join StudyHippo to see entire essay