1. Wage and HourRequirementsGabriela RosasHuman Resource Vice President

2. OverviewO FLSAO Minimum WageO Volunteer Employment and TipsO State and Local LawsO PenaltiesO OvertimeO Common ErrorsO Alternatives to OvertimeO Child LaborO FLSA Web Page 3. Fair Labor Standards ActO Is a federal law that applies to all employeesof an enterprise engaged in interstatecommerce or production of goodsO Enterprise must meet min. sales volume:O Retail and Service, 250kO Construction (none)O Laundries, Cleaners and Tailers (none)O Hospitals, Nursing Homes, Schools andothers (none)O All others 250k 4. What is Minimum Wage?O Effective July 24, 2009: $7.25 for non-exemptO Employer must average minimum wageover 40 hrs/weekO There is a long list of exempt employees forminimum wage, please visitO http://www.dol.gov/compliance/guide/minwage.htm 5. Volunteer Employees and TipsO Not allowed in private sectorO Only in government agencies and collegesponsored programsO Tips may be counted against min wage butonly up to $2.77O Are subject to withholding 6. State and Local LawsO May adopt higher minimum wage lawsO Some local governments have livingwagesO Pay in excess of federal and stateWARNING: Pay differences based on gender,race, national origin, etc. is illegal under Anti-Discrimination Laws 7. PenaltiesO Minimum wage cannot be waivedO Penalties:O Liquidated damagesO Attorney fees payable to employeeO Criminal feesO Prison time 8. Overtime (OT)O When and how to pay?O Non-exempt private sector employees whowork more than 40 hrsO Paid at a rate 1.5 their wage per hourO Paid on regular period for which it occurredO Worktime is defined as 168 hrsO Employer does not have to pay hourly, maychose other compensation optionsO Piece rate, salary, commission, other 9. Overtime (OT)O However the employee is paid a hourly ratemust be determinedO Items not included in rate are:O Christmas giftsO Leave paymentsO Expense reimbursementO Bonuses not included in contractO Employee Benefits Plan 10. ExampleO Sue works at XY Company and typicallyworks 37.5 hours from 9-5:30PM with 1 hourfor lunchO Sue worked 39.5 hours this week, does XYpay her OT? (click to reveal answer)O No, under FSLA XY is not required todo so but may chose toO Extra time worked will be paid undernormal rate 11. Common ErrorsO Can you do X on your way to lunch?O If the activity requires more than a coupleminutes of the employees time it must becounted as work timeO Company policy prohibit OT unlessapprovedO If an employees work sends them into OT thattime must be paid regardlessO Commuting time (portal to portal) is notconsidered as work time 12. Alternatives to OTO Employers may chose other methods tocompensate for additional time workedO Some examples includeO Comp DaysO working less time another day in the sameweekO Time-Off PlanO Take 1.5 hours off the next work week 13. Child LaborO FSLA defines it as:O Employment of anyone under 16 andO Employment of anyone between 16-18 in mining,manufacturing or other hazardous occupationsO Exclusions:O Family business (non-hazardous)O Agricultural employmentO Acting (tv, movie, radio)O Delivering newspapersO Each state may set different ages for minorsO NE = 19 TX=18O Specific work may be subject to age restrictions 14. FSLA ComplaintsO To file a complaint contact:O http://www.dol.gov/whd/america2.htmO Or call toll free at:O 1-866-4USWAGE (1-866-487-9243)O Employees have the right to sew as farback as two years 15. OverviewO FLSAO Minimum WageO Volunteer Employment and TipsO State and Local LawsO PenaltiesO OvertimeO Common ErrorsO Alternatives to OvertimeO Child LaborO FLSA Web Page