Employment RelationshipThe FLSA mandates that, unless an exemption applies, an “employer” pay its “employees” in compliance with the Act’s minimum wage and overtime requirements. 29 U.S.C. §§ 206, 207. The statute’s definitions of these terms are expansive and meant to indicate that the law applies to a broad range of employment relationships.
We’ll talk about the language in red next week, since coverage of this change has slid largely under the radar.541.100(a)(1): Compensated on a salary basis as of [EFFECTIVE DATE OF FINAL RULE] at a rate per week of not less than $921 (or $774 per week, if employed in American Samoa by employers other than the Federal government), exclusive of board, lodging or other facilities. As of [DATE TBD] on each subsequent year, compensated on a salary bases at a rate per week of not less than the updated salary rate published annually by the Secretary in the Federal Register at least 60 days earlier (with the rate for American Samoa to be calculated at 84 percent of the updated salary rate, provided that when the highest industry minimum wage for American Samoa equals under the minimum wage under 29 U.S. C. 206(a)(1), exempt employees employed in all industries in American Samoa shall be paid the full salary rate), exclusive of board, lodging or other facilities.541.200(a)(1): Same changes541.204(a)(1): Same changes, inserted before “exclusive of board, lodging . . .” language that already appears in this section.541.300(a)(1): Same changes541.600(b): The section 13(a)1) exemption applies to any computer employee who, as of [EFFECTIVE DATE OF FINAL RULE] is compensated on a salary basis or fee basis at a rate per week of not less than $921 (or $774 per week, if employed in American Samoa by employers other than the Federal government), exclusive of board, lodging or other facilities. As of [DATE TBD] on each subsequent year, the section 13(a)(1) exemption applies to any computer employee who is compensated on a salary bases at a rate per week of not less than the updated salary rate published annually by the Secretary in the Federal Register at least 60 days earlier (with the rate for American Sam
You have to be pretty small or specifically exempted not to be covered. So keep that in mind as we move along.Now, back to our program.29 USC § 206 provides that:Every employer shall pay to each of his employees who in any workweek is engaged in commerce or in the production of goods for commerce, or is employed in an enterprise engaged in commerce or in the production of goods for commerce, wages at the following rates:(1) except as otherwise provide in this section, not less than(c) $7.25 an hour . . . .That’s the minimum wage provision and covers a big part of what we are going to cover in the coming weeks.
15 for every hour worked through 40 in a workweek. See 29 U.S.C. §206(a).1 Under the FLSA, whether an employee is paid on an hourly or salary basis is immaterial so long as the employee’s regular rate of pay is at least equal to the federal minimum wage for all hours worked in non-overtime weeks. See Field Operations Handbook §30b02.
15 for every hour worked through 40 in a workweek. See 29 U.S.C. § 206(a).1 Under the FLSA, whether an employee is paid on an hourly or salary basis is immaterial so long as the employee’s regular rate of pay is at least equal to the federal minimum wage for all hours worked in non-overtime weeks. See Field Operations Handbook § 30b02.
In addition to passing a powerhouse bill that strengthens protections for workers who claim workplace harassment, New York recently passed two pay equity bills that expand protections for current employees and job applicants.Now, more than ever, employers in New York State should pay close attention to this rapidly changing legal landscape.From “Equal Pay for Equal Work” to “Equal Pay for Substantially Similar Work”The first pay equity bill implements a new standard for assessing pay discrimination claims under the New York Labor Law and expands protections to employees of all protected categories, not simply gender.The implications of the new legislation are best understood by comparing it to the existing law.The Old Laws – Under existing federal (29 U.S.C. § 206(d)) and state law (New York Labor Law § 194), employers must pay men and women “equal pay for equal work,” defined as requiring equal skill, effort and responsibility performed under similar working conditions. This seemingly simple standard was often difficult to define in real life, because, well, it’s just never comparing apples to apples.
“Wage claim” is defined as any claim constituting a violation of New York Labor Law § 170 (overtime), § 193 (improper deductions), § 196-d (gratuities) , or § 652 and § 673 (minimum wage). Wage claims also include claims for breach of employment contract where wages are not payed under the contract, and Federal minimum wage claims pursuant to 29 U.S.C. § 206 and § 207. The employee’s lien cannot be placed on an employer’s deposit accounts or goods.Notice of the lien must be filed within three years of the end of employment which gave rise to the wage claim.
If she does sign the bill, Alabama will become the 49th state to adopt equal pay legislation.Alabama’s Equal Pay ActThe act would prohibit an employer from paying an employee a lower wage rate than an employee of another race or sex for equal work in the same establishment, where job performance requires “equal skill, effort, education, experience, and responsibility” and occurs “under similar working conditions.” The act creates an exception where the employer bases the wage differential on any of the following factors:A seniority systemA merit systemA system that measures earnings by quantity or quality of productionA differential based on any factor other than sex or raceThe Alabama Act Compared to Federal Pay Equity LawThe Alabama act substantially adopts the federal Equal Pay Act (EPA), 29 U.S.C. § 206(d), with some notable differences. First, the act goes a step further than the EPA by prohibiting an employer from refusing to “interview, hire, promote, or employ an applicant,” or retaliate against an applicant, because the applicant does not provide wage history.The act also raises the pleading standard for employees bringing an equal pay claim.
Section 16(b) of the Fair Labor Standards Act (FLSA) is the provision that requires those participating in a federal claim for minimum wages or overtime to opt in to the class, making Rule 23 inapplicable. The same enforcement applies to claims under the Equal Pay Act (EPA), 29 U.S.C. Section 206(d). The EPA is itself the result of a 1963 amendment to the FLSA, predating Title VII’s prohibition on sex discrimination by several months but relying on Section 16(b), not the Equal Employment Opportunity Commission, for enforcement.
Continued Dialogue and Legislative Action As long as earnings between men and women remain unequal, employers should expect lawmakers to continue highlighting—and legislating—issues of gender-based pay differences and workplace inequality. Meanwhile, with a divided federal government for the time being, changes will continue to percolate at the state and local levels.ENDNOTES  29 U.S.C. § 206(d)(1).  Id.