Understanding wage and hour laws is vital for any worker. Whether you’re a part-time employee at your first job or a rising star at a mega-corporation, you need to familiarize yourself with your rights.
Why? Because employers can take advantage of you otherwise. That’s less likely to happen if you understand the basics of employment law in your area.
Understanding Wage Laws
The federal minimum wage is currently $7.25 per hour. Be aware that states can set their own minimum wages. No state’s minimum wage can be lower than the federal one. However, it can be higher. Employers generally must pay no less than the minimum wage in their state.
That’s not to say there aren’t exceptions. Employers may pay tipped employees less than minimum wage. In addition, some exceptions may apply to youth workers and full-time students. Check the U.S. Department of Labor’s (DOL) website for more information.
The Fair Labor and Standards Act (FLSA) determines the minimum wage. Ideally, the minimum wage will keep pace with inflation and changes in the cost of living, but that doesn’t always happen.
Hourly vs. Salaried Employees
Hourly workers receive pay for the time they work. Salaried employees receive a flat rate every year (although they may earn bonuses, commissions, etc.) regardless of how many hours they work.
Misclassifying employees is one way that employers may attempt to pay them less than they deserve. For example, perhaps an hourly employee works long hours to complete a project. Their employer may classify them as a salaried employee. They might do so in an attempt to avoid paying overtime.
Overtime Pay
The FLSA also establishes overtime pay requirements throughout the country. Per the current requirements, employers must provide overtime pay to hourly employees who work more than 40 hours in a given work week. Overtime pay must be at least 1.5 times an employee’s regular hourly rate.
As with minimum wage laws, states can set their own overtime pay laws. You may need to research employment law in your state to ensure a boss isn’t taking advantage of you. For example, in your state, you may be eligible for overtime pay if you earn below a certain weekly amount.
Overtime pay may also be a requirement for salaried, non-exempt workers. These are workers who receive a salary but are paid for a 40-hour work week.
Some salaried workers are, again, paid more for their work than for their time. They are “exempt” and thus not eligible to receive overtime pay. Salaried, non-exempt workers can receive overtime pay. This is another nuance that an unscrupulous employer might take advantage of to avoid paying you your full wages.
Meal and Rest Break Laws
Federal meal and rest break laws are slightly complex. Under federal law, employers do not have to offer short breaks, like coffee breaks or short lunches. These types of breaks usually last between five and 20 minutes. However, the law does require employers to count these breaks as compensable time if they offer them.
Federal law does require employers to provide “meal periods” when employees work certain lengths of time. The length of these meal periods can vary depending on several factors, such as the length of an employee’s shift. Unlike short breaks, the law doesn’t require these meal periods to count as compensable work time.
As is always the case, individual state laws may be different. No state law can allow employers to not offer required breaks and meal periods, but it might require employers to offer more than federal law requires.
Recordkeeping Requirements
Employers generally need to keep strict records to show they’ve complied with wage and hour laws. It can be difficult to show that an employer didn’t pay you what you deserve if they haven’t kept records tracking your hours and your pay.
Common types of records employers may need to maintain include:
- Contracts and other onboarding documents
- Documents and records related to dates of employment
- Timesheets, pay stubs, and other documentation of wages and hours
At the very least, the FLSA requires employers to keep payroll records for the last three years. Once more, the laws in your state may include additional requirements.
The U.S. Equal Employment Opportunity Commission (EEOC) handles various types of labor and employment complaints. You can file a complaint with the EEOC if you feel your employer hasn’t maintained records properly.
Enforcement and Remedies
There are various ways wage and hours laws are enforced. The specific enforcement method for one law might not be the enforcement method for another.
The way in which these laws are enforced may also vary depending on who decides to hold an employer accountable for violating them. For example, if you’re a worker whose employer has violated a wage and hour law, you may file a complaint with the DOL. The DOL can also direct you to the appropriate agency depending on the nature of your case.
The consequences an employer may face if you were to file a complaint could vary as well. Generally, when an employer violates a wage or hour law, they may need to pay an employer pay that they failed to provide in the first place.
In some cases, violations of wage and hour laws also result in criminal penalties for employers. They may face fines, and in some cases can even face jail time.
As with every entry here, state employment law also affects this topic. The Department of Labor in your state can provide more information about enforcement agencies.
Speak With an Employment Law Attorney
You may have legal options if you believe an employer is violating a state or federal employment law. However, knowing what those options are and how to build an effective wage theft case can prove challenging if you lack experience.
That’s one of many reasons to strongly consider enlisting the help of an attorney. An employment law attorney can provide the representation you need in these circumstances. Get started today by taking the Free Case Evaluation to speak with an independent lawyer who subscribes to the website and may handle cases like yours.
