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research and identify the salient features of the Fair Labor Standards Act (FLSA

ID: 1193148 • Letter: R

Question

research and identify the salient features of the Fair Labor Standards Act (FLSA). Provide a definition of exempt and nonexempt employees. State at least three criteria that differentiate an exempt and nonexempt employee. Research and discuss the proposed changes to the FLSA—the first real changes since 1938.

How do these modifications differ from the 1938 law? How will the status of exempt and nonexempt employees be altered?

Do you think these changes benefit employees or the employer? Explain.

What are the controversies associated with these modifications? Include the union's objections. Which do you prefer—the current FLSA law or the proposed changes? Explain by giving valid reasons.

Explanation / Answer

The salient features of Fair Labor Standards Act (FLSA) are the following.

Exempt employees are the ones who are required to make at least $455 and they are not entitled to be paid overtime.

Non - Exempt employees are the ones to whom Employers are required to pay one-and-a-half times their regular wages when they work more than 40 hours in a week. Naturally, that means they are entitled to overtime.

Three standards that differentiate between exempt and non-exempt employees are tax differentials, different pay structure and over time implications.

The major changes were proposed by the Department of Labor in 2003 regarding child labor laws. It proposed FLSA should be modified and it was declared that poultry slaughtering plants, forklift passengers, firefighting, and loading compactors and balers were too hazardous for anyone under 18. 14 and 15 years olds would be allowed to work in advertising, banking and technology.

These modifications to the FLSA largely benefited exempt employers, because it broadened the definitions of exempt employees.