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How FLSA Affects Your Business

The Fair Labor Standards Act (FLSA) poster is one of many notices that U.S. employers in the private sector or federal, state, or local governments are required to display in their employees’ place of work. Along with the FLSA compliance poster, employers in the United States are required to display notices in reference to the Employee Polygraph Protection Act (EPPA), Uniformed Services Employment and Reemployment Rights Act (USERRA), Occupational Safety and Health Act (OSHA), Equal Employment Opportunity (EEO), and the Family & Medical Leave Act (FMLA). All of these mandatory notices are included on Poster Compliance Center’s Federal Labor Law Poster.

 

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What is an FLSA poster?

The Fair Labor Standards Act (FLSA) sets the federal minimum wage for employees who work in the private sector or for federal, state, or local governments of the United States. Besides minimum wage, the FLSA poster addresses labor issues including overtime pay, recordkeeping, youth employment, tip credit, nursing mothers, and enforcement of policy. Federal law requires that employers display the Fair Labor Standards Act poster in a place ​where their employees may easily see it.

What the FLSA poster addresses

The FLSA was established to protect the rights of U.S. laborers in the private sector and local, state, and federal governments. One way workers are protected is by being notified of their rights. The goal of the FLSA minimum wage poster is to inform workers of their rights according to the law. This poster specifically addresses issues for full-time and part-time workers relating to the following:

Minimum Wage

The federal minimum wage is currently $7.25 per hour and has been since July 24, 2009. Many states set their own minimum wage. In cases where the employee is subject to both state and federal minimum wage, the employee must receive the higher minimum wage of the two options. Federal minimum wage standards have had three changes in the past ten years:

  • $5.85 per hour effective July 24, 2007
  • $6.55 per hour effective July 24, 2008
  • $7.25 per hour effective July 24, 2009

 

Recordkeeping

Employers must display the FLSA minimum wage poster in a place where employees are able to easily see it. Employers are also required to keep records of employees’ paystubs and timecards.

 

Tip Credit

Employers who have employees who receive tips are allowed to claim wage credits based upon the amount of dollars in tips their employees receive. If employers are eligible to receive tip credits, they must pay tipped employees at least $2.13 per hour. The tips received by employees and their base pay must add up to the mandated minimum wage.

Overtime Pay

The Fair Labor Standards Act requires employers to pay covered and nonexempt employees overtime pay for any hours worked over 40 per workweek. The rate of pay must be at least one and one-half times the rate of regular hourly pay. There is no limit to the amount of overtime hours employees might work in a single workweek; however, the employee must be at least 16 years old. Holidays and weekends are not mandated to be paid overtime.

 

Youth Employment

Child labor laws were developed as part of the Fair Labor Standards Act to protect the health, safety, and education of youth. Youth between the ages of 14 and 15 years old may work outside of school hours in certain industries. Industries excluded from eligibility are manufacturing, mining, and other hazardous industries or positions. Working youth must be at least 16 years old in order to be eligible to work in most non-farm-related jobs and at least 18 years old in order to do jobs that are declared hazardous, according to the Secretary of Labor.

 

Nursing Mothers

Up until one year after a mother has given birth to a child, an employer must provide breastfeeding breaks to the mother. Employers must also provide a safe and private environment, other than a bathroom, for the breastfeeding mother to use.

FLSA poster requirements

As of August 1, 2016, changes were made to the FLSA poster requirements. Every time there is a mandatory change in regulations, employers must notify their employees through revised postings. Employers are required to display the latest version of the FLSA compliance poster in their employees’ place of work. You can get an FLSA poster 2016 update on the Federal Labor Law Poster from Poster Compliance Center.

What happens if I’m not compliant?

Employers who do not comply with the Fair Labor Standards Act may face fines and penalties, depending upon the severity of the offense. Employers must stay in compliance with the law and post the FLSA labor poster in an area where their employees are easily able to see it.

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