Fair Labor Standards Act

The Fair Labor Standards Act for Employees and Employers

The Fair Labor Standards Act (FLSA) is a comprehensive guide establishing several vital rights and obligations for employees and employers. Its aim is to ensure fair labor standards in Redding, California and across the United States, providing a wealth of knowledge and understanding for all involved.

Under the protective umbrella of the FLSA, employees are entitled to a minimum wage and overtime pay for hours worked over 40 in a workweek. The minimum wage provision ensures that employers pay employees at least the federal minimum wage for all hours worked, providing a safety net for workers. Overtime compensation, at least one and one-half times the employee’s regular pay rate for any hours worked beyond 40 in a workweek, further secures their rights.

The FLSA also defines what constitutes compensable work hours. Employees must be compensated for all time required to be on duty, on the employer’s premises, or at a prescribed workplace, and for any time they are suffered or permitted to work Morillion v. Royal Packing Co., 22 Cal. 4th 575. This includes situations where the employer knows or should have known that the employee is working Jong v. Kaiser Foundation Health Plan, Inc., 226 Cal. App. 4th 391.

Employers have specific obligations under the FLSA. They must maintain accurate records of hours worked and wages paid to employees Guerrero v. Superior Court, 213 Cal. App. 4th 912. Employers must also post notices explaining the FLSA’s provisions in conspicuous places where employees can readily observe them. Failure to comply with these posting requirements can extend the statutory period for filing claims under the FLSA.

Joint employment situations are recognized under the FLSA, where two or more employers may be jointly responsible for compliance with the Act. This can occur when one employer acts directly or indirectly in the interest of another employer about the employee or when the employers are not entirely disassociated concerning the employment of a particular employee. In such cases, all joint employers are individually responsible for ensuring compliance with the FLSA Guerrero v. Superior Court, 213 Cal. App. 4th 912.

The FLSA’s definition of “employer” is broad and includes any person acting directly or indirectly in the interest of an employer about an employee. This expansive interpretation is intended to effectuate the FLSA’s broad remedial purposes Guerrero v. Superior Court, 213 Cal. App. 4th 912, Reynolds v. Bement, 36 Cal. 4th 1075. The economic reality test determines whether an employer-employee relationship exists, considering factors such as the power to hire and fire, control over work schedules and conditions, determination of pay rates, and maintenance of employment records Guerrero v. Superior Court, 213 Cal. App. 4th 912, Goonewardene v. ADP, LLC, 5 Cal. App. 5th 154.

Employees’ rights under the FLSA are nonwaivable, meaning that employees cannot waive their right to minimum wage or overtime pay through any agreement with their employer. Contracts that fall short of the guaranteed minimum compensation must be set aside. However, employers and employees can agree to terms that provide higher wages or shorter workweeks than the FLSA requires. 

In California, the FLSA’s provisions are supplemented by state laws that may provide greater protections. For example, California’s minimum wage laws require payment for each hour worked, and the averaging method used under federal law does not apply  Armenta v. Osmose, Inc., 135 Cal. App. 4th 314. Additionally, California law includes specific provisions for agricultural workers, who were historically excluded from the FLSA’s protections. 

In conclusion, the FLSA establishes fundamental employee rights, including minimum wage and overtime pay, and imposes significant obligations on employers to ensure compliance. These provisions protect workers from unfair labor practices and ensure they are compensated fairly for their work. In California, state laws may provide additional protections, further enhancing the rights of employees under the FLSA.

If you are an employer or an employee with concerns about the Fair Labor Standards Act in Redding or other wage and hour matters, contact Glasner Employment Law & Mediation.