February 1, 2010
Should nonexempt employees be getting paid for working on lunch or do they get a rest break? We are laying off workers, do we owe them vacation? Can a payroll professional simply check the Fair Labor Standards Act (FLSA) to find the answer with a quick verification of any state requirement? Or is the state the main source to go to first with the FLSA as the fallback?
Unfortunately, the answers to these questions are not simple. The Fair Labor Standards Act of 1938 (FLSA) sets the federal standards for minimum wage, overtime, equal pay, recordkeeping, and child labor. But it does not address all the issues that arise when paying an employee. It is silent on such items as when an employee must be paid or the method that needs to be used. States on the other hand are autonomous when it comes to wage and hour laws within their own borders. The state may mirror a federal law, exceed it, and have a version of the same law with the lesser requirements or no law governing an area at all. For multistate employers the situation is even more complicated. Employees located in one state may be subject to different requirements than employees working in another.
Source: Payroll Practitioner’s Monthly, February 2010
This text is provided with the understanding that ECFA is not rendering legal, accounting, or other professional advice or service. Professional advice on specific issues should be sought from an accountant, lawyer, or other professional.