Question

FLSA Analysis

For this assignment, you will be researching the Fair Labor Standards Act (FLSA).

For the first section of your paper:

Assess the main features of the Fair Labor Standards Act (FLSA).
Compare the definitions of exempt and nonexempt employees.
Evaluate at least three criteria that differentiate an exempt and nonexempt employee.

In spring 2014, then-President Obama sent a memo to the US Department of Labor (DOL) Secretary directing reform of FLSA to address white-collar exemptions and, effectively, increase the number of employees entitled to overtime pay. Some changes have been approved and became effective as of December 2016. Research some of the revisions the DOL adopted such as an increase in minimum salary requirements and changes to the current “primary duty” test.

For the second section of your paper:

Analyze some of the controversies and objections associated with these modifications. Explain and justify your view--do these changes benefit employees or the employer? Do you prefer the previous FLSA law or the changes?

Answer 1

The FLSA establishes the overtime pay, minimum wages for the workers, employment standards and the recordkeeping tasks affecting the employees in private and public sector. The minimum wage rate is being set at $7.25 per hour from July 24^th, 2009. It also covers non-exempt employees and made sure that they are being for the overtime work which shouldn’t be less than one and a half times the regular pay.

The exempt and non-exempt are being classified as on the basis of the overtime pay. Those who are paid for the overtime which must be one and a half times the regular wage are non-exempt employees. The exempt employees are mostly associated with the white collar jobs such as computer professionals, sales employees and administration and executive employees. The advantage the exempted employees have is that they do not need to keep track of the work hours no matter how less they work.

The changes in the pay according to the primary duty of the employees is a big revision in the DOL adopted act.

The objections with respect to the changes were because with the changes, a number of employees had shifted from exempt to non-exempt category. This has increased the workload plus the cost to the organisations because now a larger number of employees must be paid for the overtime. This has benefitted the employees as they are being paid more. The changes must be preferred over the previous version as employees reserve all the rights of being paid for their hard work.