Another Week of Available Work: Understanding the Fair Labor Standards Act (FLSA)
Simmons begins by explaining the Fair Labor Standards Act (FLSA), a federal law that sets standards for minimum wage, overtime pay, and recordkeeping. He emphasizes that under the FLSA, non-exempt employees must receive overtime pay at one and a half times their regular rate for hours worked over 40 in a workweek. Misclassifying employees as exempt can lead to significant legal and financial consequences.
The Texas Payday Law
The discussion then shifts to the Texas Payday Law, which governs the timing and method of wage payments in the state. Simmons notes that this law ensures employees receive their earned wages in a timely manner and outlines the procedures for wage disputes. Employers must adhere to these regulations to maintain compliance and avoid penalties.
Holiday Pay Misconceptions
A common question among employers is whether they are required to pay extra for holiday work. Simmons clarifies that, under the FLSA, there is no federal requirement for premium pay on holidays unless it results in overtime hours. However, employers may choose to offer holiday pay as part of their compensation policies, which should be clearly documented and consistently applied.
Changes to Overtime Exemptions
The episode also addresses recent developments regarding overtime exemptions. Simmons discusses a federal rule that was overturned, which would have increased the minimum salary threshold for exempt executive, administrative, and professional employees. He advises employers to stay informed about such changes, as they can impact employee classifications and payroll practices.
TWC as a Resource
Throughout the conversation, Simmons emphasizes that the Texas Workforce Commission (TWC) serves as a valuable resource for employers. TWC offers guidance on wage and hour laws, assists with compliance, and provides educational materials to help businesses navigate complex labor regulations.
For a deeper understanding of these topics and practical advice on managing wage and hour issues, listen to the full episode, Wage and Hour Law 101 with Tommy Simmons.
