Question

A very timely issue regarding exempt (i.e. salaried) employees is the new Fair Labor Standards Act (FLSA) provisions regarding increased minimum salaries.What is the Fair Labor Act and provide a summary of your thoughts on whether or not you agree with this legislation. 250 words or less

Answer 1

Fair Labor Standards Act of 1938 is an act that gives right to minimum wages and an overtime that equals to one and half times the day's pay for the extended hours beyond the stipulated limit. It applies to the employees engaged in interstate commerce, or in production of goods for commerce or are employed by an organisation engaged in such activities, barring some categories that come under exemption like white collar jobs comprising of administrative, managerial and executive employees.

A path breaking change in the FLSA was brought about by the government in 2016 by updating the overtime rules that brought millions of Americans under the FLSA benefits. According to the changes, the employees earning less than $913 per week must be paid overtime. The regulations are subject to revision every three years.

Determination of eligibility to the benefits of FLSA on grounds of wages is a welcome move. It will not only bring wage equality among all workers, but also enhance the motivation level of the employees who were not benefited by the law till now, resulting in greater productivity.