People Are Asking Today

1.       When is overtime due?

        Answer: For covered, nonexempt employees, the Fair Labor Standards Act (FLSA) 
       requires overtime pay at a rate of not less than one and one-half times an employee's 
       regular rate of pay after 40 hours of work in a workweek. Some exceptions to the 40 hours 
      per week standard apply under special circumstances to police officers and firefighters 
      employed by public agencies and to employees of hospitals and nursing homes. 

      Some states also have enacted overtime laws. Where an employee is subject to both      
      the state and federal overtime laws, the employee is entitled to overtime according to the   
     higher standard (i.e., the standard that will provide the higher rate of pay).

        

2.   When must breaks and meal periods be given?
 

Answer: The Fair Labor Standards Act (FLSA) does not require breaks or meal periods be given to workers. Some states may have requirements for breaks or meal periods. If you work in a state which does not require breaks or meal periods, these benefits are a matter of agreement between the employer and the employee (or the employee's representative).

3.      How are vacation pay, sick pay, and holiday pay computed and when are they due?
 

Answer: The Fair Labor Standards Act (FLSA) does not require payment for time not worked, such as vacations, sick leave or holidays (federal or otherwise). These benefits are a matter of agreement between an employer and an employee (or the employee's representative

4.      What is the minimum wage?

Answer: The federal minimum wage for covered nonexempt employees is $7.25 per hour effective July 24, 2009. The federal minimum wage provisions are contained in the Fair Labor Standards Act (FLSA). Many states also have minimum wage laws. Where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher of the two minimum wages.

Various minimum wage exceptions apply under specific circumstances to workers with disabilities, full-time students, youth under age 20 in their first 90 consecutive calendar days of employment, tipped employees and student-learners.

5.      If an employee suffers an illness and the doctor writes a medical certification that the   
       employee is sick, who pays for this sick leave?
 

Answer: Generally, federal labor laws do not require employers to provide sick leave or pay sick time off. However, if employers do provide sick leave, the Family and Medical Leave Act (FMLA) permits an eligible employee to substitute paid leave for the unpaid leave to the extent the employer's usual requirements for the use of sick/medical leave are met and the sick leave qualifies as FMLA leave. Employers are also permitted to designate paid leave as FMLA leave assuming all the conditions are met.

6.      What is ERISA?
 

Answer: The Employee Retirement Income Security Act of 1974, or ERISA, protects the assets of millions of Americans so that funds placed in retirement plans during their working lives will be there when they retire.

ERISA is a federal law that sets minimum standards for pension plans in private industry.  For example, if an employer maintains a pension plan, ERISA specifies when an employee must be allowed to become a participant, how long they have to work before they have a nonforfeitable interest in their pension, how long a participant can be away from their job before it might affect their benefit, and whether their spouse has a right to part of their pension in the event of their death.  Most of the provisions of ERISA are effective for plan years beginning on or after January 1, 1975.
ERISA does not require any employer to establish a pension plan.  It only requires that those who establish plans must meet certain minimum standards.  The law generally does not specify how much money a participant must be paid as a benefit.

   ERISA does the following:

    Requires plans to provide participants with information about the plan including important information about plan features and funding.  The plan must furnish some information regularly and automatically.  Some is available free of charge, some is not.

   Sets minimum standards for participation, vesting, benefit accrual and funding.  The law defines how long a person may be required to work before becoming eligible to participate in a plan, to accumulate benefits, and to have a nonforfeitable right to those benefits.  The law also establishes detailed funding rules that require plan sponsors to provide adequate funding for your plan.

    Requires accountability of plan fiduciaries.  ERISA generally defines a fiduciary as anyone who exercises discretionary authority or control over a plan's management or assets, including anyone who provides investment advice to the plan.  Fiduciaries who do not follow the principles of conduct may be held responsible for restoring losses to the plan.

   Gives participants the right to sue for benefits and breaches of fiduciary duty.

  Guarantees payment of certain benefits if a defined plan is terminated, through a federally chartered corporation, known as the Pension Benefit Guaranty Corporation.