Employment Law Prof Vik Advani Fall 2024 Compensation FLSA FMLA WARN Unemployment School of Management and Labor Relations Material to Be Covered Regulation of Compensation Unemployment Compensation WARN FMLA FLSA UNEMPLOYMENT COMPENSATION WARN FMLA 3 School of Management and Labor Relations Fair Labor Standards Act FLSA Established in 1938 by the Department of Labor DOL Purpose Minimum Wage Overtime Pay Child Labor Establishes protections standards for 4 School of Management and Labor Relations The Fair Labor Standards Act FLSA establishes minimum wage overtime pay recordkeeping and child labor standards affecting full time and part time workers in the private sector and in Federal State and local governments Covered nonexempt workers are entitled to a minimum wage of not less than 7 25 an hour If employee in NJ minimum wage is 11 00 per hour Overtime pay at a rate of not less than one and one half times their regular rates of pay is required after 40 hours of work in a workweek 5 School of Management and Labor Relations SO FLSA generally requires that employees be paid At least federal minimum wage of 7 25 per hour Overtime premium pay of time and one half of the employee s regular rate of pay for all hours worked over 40 in a workweek for employees in hourly non exempt status Overtime premium pay of one half of the employee s regular rate of pay for all hours worked over 40 in a workweek for employees in salaried non exempt status 6 School of Management and Labor Relations Employees whose jobs are governed by the FLSA are either exempt or nonexempt Nonexempt employees are entitled to overtime pay Exempt employees are not Most employees covered by the FLSA are nonexempt Some are not 7 School of Management and Labor Relations White collar exemptions allow for exemptions from these requirements Salary Test 1 Employee must be paid at least a certain compensation level 2 Employee is paid on a salary rather than hourly basis and Duty Test 3 Employee performs certain exempt duties 8 School of Management and Labor Relations Salary level more As of 1 20 20 Minimum paid must 684 per week or If paid less than 684 per week cannot be exempt even if he she meets the duties test If paid 684 per week or more can be exempt only if he she also satisfies the duties test Salary cannot be prorated but nondiscretionary bonuses and incentive payments including commissions paid on an annual or more frequent basis can satisfy up to 10 percent of the standard salary level To repeat Section 13 a 1 of the FLSA provides an exemption from both minimum wage and overtime pay for employees employed as bona fide executive administrative professional and outside sales employees 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 684 per week 9 School of Management and Labor Relations Executive Exemption To qualify for the executive employee exemption all of the following must be met The employee must be compensated on a salary basis at a rate not less than 684 per week The employee s primary duty must be managing the enterprise or managing a customarily recognized department or subdivision of the enterprise The employee must customarily and regularly direct the work of at least two or more other full time employees or their equivalent and The employee must have the authority to hire or fire other employees or the employee s suggestions and recommendations as to the hiring firing advancement promotion or any other change of status of other employees must be given particular weight 1 0 School of Management and Labor Relations Administrative Exemptions To qualify for the administrative employee exemption all of the following tests must be met The employee must be compensated on a salary at a rate not less than 684 per week The employee s primary duty must be the performance of office or non manual work directly related to the management or general business operations of the employer or the employer s customers and The employee s primary duty includes the exercise of discretion and independent judgment with respect to matters of significance 1 1 School of Management and Labor Relations Professional Exemption To qualify for the learned professional employee exemption all of the following tests must be met The employee must be compensated on a salary not less than 684 per week The employee s primary duty must be the performance of work requiring advanced knowledge defined as work which is predominantly intellectual in character and which includes work requiring the consistent exercise of discretion and judgment The advanced knowledge must be in a field of science or learning and The advanced knowledge must be customarily acquired by a prolonged course of specialized intellectual instruction 1 2 School of Management and Labor Relations Creative Professional Exemption To qualify for the creative professional employee exemption all of the following tests must be met The employee must be compensated on a salary not less than 684 per week The employee s primary duty must be the performance of work requiring invention imagination originality or talent in a recognized field of artistic or creative endeavor 1 3 School of Management and Labor Relations Computer Employee Exemption To qualify for the computer employee exemption the following tests must be met The employee must be compensated either on a salary of 684 per week or if compensated on an hourly basis at a rate not less than 27 63 an hour The employee must be employed as a computer systems analyst computer programmer software engineer or other similarly skilled worker in the computer field performing the duties described below CONT D NEXT PAGE 1 4 School of Management and Labor Relations Computer Employee Exemption CONT D The employee s primary duty must consist of The application of systems analysis techniques and procedures including consulting with users to determine hardware software or system functional specifications The design development documentation analysis creation testing or modification of computer systems or programs including prototypes based on and related to user or system design specifications The design documentation testing creation or modification of computer programs related to machine operating systems or A combination of the aforementioned duties the performance of which requires the same level of skills 1 5 School of Management and Labor Relations