Fair Labor Standards Act (FLSA) in Indiana Libraries
Application of FLSA and Indiana state law to libraries in Indiana, covering topics such as minimum wage, overtime pay, exemptions, and more. Understand who is covered, requirements, and youth restrictions.
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Fair Labor Standards Act (FLSA) Angela Moore Indiana State Library Intern July 31, 2013
Presenter Introduction Rising 2nd year law student Not a lawyer Summer legal intern at ISL Former librarian at Berne Public Library 2
Disclaimer This is legal information, not legal advice I cannot apply the law to your specific situation 3
Overview FLSA and relevant Indiana state law How they apply to Indiana libraries Who is covered? General Requirements Minimum wage Overtime pay Compensatory time (aka comp time ) Exemptions Youth restrictions Miscellaneous 4
Who is Covered? Government agencies (e.g. public libraries) have enterprise coverage All employees 6
Who is covered? Employees In general, someone who works for you Defined in 29 USC 203(e) Not employees: Independent contractors Don t be tricky: tested by economic reality Volunteers of public agencies: 29 USC 203(e)(4) But, employees cannot volunteer to perform the same services they are employed to do Because public agencies (e.g. political subdivisions such as public libraries) can have unpaid volunteers, they can have unpaid interns 7
Minimum Wage $7.25 per hour worked Exemptions for administrative, executive, professional, & computer-related positions Proposed legislation 9
Hours Worked What counts? Time employee is suffered or permitted to work Employer has the duty to stop extra work Unscheduled time, work from home, etc. are paid Breaks (including meals) are paid unless: Relieved of duties, and Able to use time for own purposes 10
Hours Worked Training Paid if one of the following: During regular working hours Mandatory Job-related, or Employee performs productive work for employer Employee-initiated educational courses are not hours worked 11
Proposed Legislation Fair Minimum Wage Act of 2013 Identical bills: HR 1010 and S 460 Referred to committee Would raise minimum wage to $8.20 after 90 days Would create system for yearly changes to minimum wage, 95 increases for first 2 years Will it pass? 12 Image from Microsoft Office Online Clip Art
Overtime 13
Overtime Employees 18 or older can work any number of hours per day/week Overtime pay kicks in for hours worked over 40 per week Not calculated per day Employer sets day workweek begins Overtime rate can be no lower than time & Applies to hourly & salaried employees Exemptions for administrative, executive, professional, & computer-related positions 14
Compensatory Time Section 7(o) of FLSA: 29 USC 207(o) Give additional paid time off instead of overtime pay Public agencies (e.g. public libraries) Pursuant to an agreement You are not required to give comp time instead of overtime pay No more than 240 accumulated hours Receive 1.5 hours comp time per overtime hour 15
Compensatory Time Example: Employee works 50 hours in one work week 10 hours overtime 2 ways to compensate employee: Pay for 55 hours (40 hours plus 10 hours 1.5), or Pay for 40 hours, employee receives 15 hours comp time 16
Exemptions 17
Exemptions To qualify for exemption, employees generally must meet certain tests regarding their job duties and be paid on a salary basis at not less than $455 per week. Job titles do not determine exempt status. Job must be one of the following: Administrative Executive Professional Computer-related (exception to salaried rule) 18 http://www.dol.gov/whd/regs/compliance/fairpay/fs17a_overview.htm
Administrative Exemption Salaried At least $455 per week Primary duty: Office work, or Non-manual work directly related to management or general business operations Exercises discretion and independent judgment in matters of significance 19 http://www.dol.gov/whd/regs/compliance/fairpay/fs17c_administrative.htm
Executive Exemption Salaried At least $455 per week Primary duty Managing the whole or a recognized department or subdivision Regular direction of at least 2 full-time employees (or their equivalent) Authority to hire/fire, or recommendations given particular weight 20 http://www.dol.gov/whd/regs/compliance/fairpay/fs17b_executive.htm
Professional Exemption Salaried At least $455 per week Primary duty Perform work requiring advanced knowledge & predominantly intellectual in character Job requires advanced knowledge Field of science or learning Customarily acquired through intellectual instruction (e.g. by getting a degree) 21 http://www.dol.gov/whd/regs/compliance/fairpay/fs17d_professional.htm
Computer-Related Exemption Requirements Wage Salaried at $455 per week or more, OR Hourly at $27.63 or more Skilled worker in the computer field e.g. systems analyst, programmer, software engineer Not included: Computer hardware repair/manufacture Employees whose work is facilitated by computers 22 http://www.dol.gov/whd/regs/compliance/fairpay/fs17e_computer.htm
Exemptions Recap Administrative Executive Professional Computer-related Wage + nature of job Exempt from overtime pay 23
Youth Restrictions Under 14 Very narrow allowances (e.g. child actors) Ages 14-15 FLSA Age 16 & Age 17 Indiana law 18 and above Not considered youth U.S. Dept. of Labor s Child Labor Bulletin 101 http://www.dol.gov/whd/regs/compliance/childlabor101.pdf Indiana Child Labor FAQs: www.in.gov/dol/2398.htm 25
Youth Restrictions Ages 14-15 Cannot work: During school hours, before 7am, or after 7pm (or 9pm from June 1 Labor Day) Over 3 hours on school days/8 hours on non-school days Over 18 hours in school weeks/40 hours for non-school No hazardous jobs Operating machinery, using ladders, etc. School hours, days, weeks of worker s local public school system, even if private-, home-schooled 26 http://www.dol.gov/whd/regs/compliance/childlabor101_text.htm
Youth Restrictions - Homeschoolers Federal law says no working during school hours as set by local public school system, Indiana law says can work during traditional school hours with proper permission. Consult your lawyer 27
Youth Restrictions Age 16 Indiana law May work: 8 hours per day 30 hours per week Until 10:00 p.m. on nights followed by a school day With parental permission may work: 9 hours per day, Until 12:00 a.m. on nights NOT followed by a school day, 40 hours per school week, And/or 48 hours per non-school week. With written school permission may work: After 7:30am and before 3:30pm May not work: More than 6 days per employer's work week Before 6:00 am In hazardous jobs 28 www.in.gov/dol/2398.htm
Youth Restrictions Age 17 Indiana Law May work: 8 hours per school day 30 hours per week Until 10:00 p.m. on nights followed by a school day With written parental permission, may work: 9 hours per day 40 hours per school week 48 hours per non-school week until 11:30 p.m. on nights followed by a school day or until 1:00 a.m. on nights followed by a school day, but not on consecutive nights and not more than two school nights per week With written school permission may work: After 7:30am and before 3:30pm May not work More than 6 days per employer's work week Before 6:00 a.m. on school days In hazardous jobs 29 www.in.gov/dol/2398.htm
Youth Restrictions Breaks Shift of 6 or more hours One or two breaks totaling 30 minutes or more Can be unpaid Document all breaks Withdrawn/high school graduates If over 16, not bound to the hour restrictions/break requirements 30 http://www.dol.gov/whd/regs/compliance/childlabor101_text.htm; www.in.gov/dol/2398.htm
Youth Restrictions Youth Minimum Wage $4.25 for first 90 calendar days of employment $7.25 after first 90 days/18th birthday Cannot displace workers to hire new youths at $4.25 31
Youth Restrictions Work permits Indiana state law For minors 14-17 Required during the summer, too Can only obtain once hired Obtained through local accredited school (even if home-schooled) 32
Youth Restrictions Exceptions to work during school hours: Work-Study and Career Exploration Governed by Code of Federal Regulations 29 CFR 570.36 and 29 CFR 570.37 Must be school-administered and school-supervised 33
Recordkeeping Records for each non-exempt worker, no particular form Keep for at least two years, some things three years: 1. Employee's full name and social security number. 2. Address, including zip code. 3. Birth date, if younger than 19. 4. Sex and occupation. 5. Time and day of week when employee's workweek begins. 6. Hours worked each day. 7. Total hours worked each workweek. 8. Basis on which employee's wages are paid (hourly/weekly/etc.) 9. Regular hourly pay rate. 10. Total daily or weekly straight-time earnings. 11. Total overtime earnings for the workweek. 12. All additions to or deductions from the employee's wages. 13. Total wages paid each pay period. 14. Date of payment and the pay period covered by the payment. Don t forget about Indiana Commission on Public Records http://www.dol.gov/whd/regs/compliance/whdfs21.pdf; http://www.in.gov/icpr/index.htm 35
Nursing Mother Employees Amendments to FLSA through Affordable Care Act: 29 USC 207 (r) Reasonable break time each time mother (non- exempt employee) needs to express milk For one year after child s birth A place (cannot be a bathroom) Shielded from view Free from intrusion by coworkers or public Exemption if <50 employees and undue hardship State law: IC 5-10-6-2 (For state/political subdivisions) Breaks must be paid, but should coincide with other breaks 36 http://www.dol.gov/whd/regs/compliance/whdfs73.htm; http://www.in.gov/legislative/ic/code/title5/ar10/ch6.html
Mandatory FLSA Posting Every employer of employees subject to the Fair Labor Standards Act's minimum wage provisions must post, and keep posted, a notice explaining the Act in a conspicuous place in all of their establishments so as to permit employees to readily read it. Available at: http://www.dol.gov/whd/regs/compliance/posters/flsa.htm 37
Resources US Department of Labor http://www.dol.gov/whd/flsa/ http://www.dol.gov/compliance/laws/comp-flsa.htm Hotline: 1-866-4USWAGE (1-866-487-9243) FLSA for gov t employers http://www.dol.gov/whd/regs/compliance/whdfs7.pdf Indiana Department of Labor http://www.in.gov/dol/ FAQs: http://www.in.gov/dol/2345.htm Child Labor FAQs: www.in.gov/dol/2398.htm 38
Questions For questions about how the FLSA applies to your library, contact your library s attorney. 39