Employment Laws – Wage & Hour Coverage Overview

by | Oct 25, 2011 | Labor and Employment

A lot of my recent reading has reminded me of the ever-expanding number and scope of federal and state employment laws.  Requirements and coverage are so varied that I think it is valuable to provide a check-up checklist, if you will, over the next several posts of some of the most prominent employment laws.  It can be used to do a basic review of your business to determine whether you must comply with these laws.

Today the focus is Federal Wage and Hour laws.  Next post we will review Equal Employment Opportunity laws.  Please note that these lists are not exhaustive and many of the laws contain exceptions and exemptions.

Davis Bacon & Related Acts:
The Davis Bacon and Related Acts (DBRA) apply to contractors and subcontractors performing on federally funded or assisted contracts in excess of $2,000 for the construction, alteration, or repair of public buildings or public works.

Fair Labor Standards Act:
The Fair Labor Standards Act (FLSA) applies to hospitals; institutions primarily engaged in the care of the sick, aged, mentally, or disabled who reside on the premises; schools for children who are mentally or physically disabled or gifted; preschools, elementary and secondary schools, and institutions of higher education; and federal, state, and local government agencies regardless of their gross revenues.

The Fair Labor Standards Act also applies to enterprises with (1) at least $500,000 in annual gross revenues, and (2) have employees who engage in interstate commerce, produce goods for interstate commerce, or handle, sell, or work on goods or materials that have moved in or are produced for interstate commerce.

Finally, the Fair Labor Standards Act applies to individual employees who are engaged in interstate commerce, the production of goods for interstate commerce, or an activity that is closely related and directly essential to the production of such goods.

Family and Medical Leave Act:
The Family and Medical Leave Act (FMLA) applies to public agencies and local education agencies regardless of their size.

The Family and Medical Leave Act applies to employers who have at least fifty (50) employees each working day during at least twenty (20) calendar weeks in the current or preceding year.  Note that while the FMLA may apply to your business, employees must satisfy eligibility requirements before they qualify for leave.

Service Contract Act:
The Service Contract Act (SCA) applies to contracts and bid specifications, with some exceptions, in excess of $2,500 entered into by federal or District of Columbia agencies where the purpose of the contract is to furnish services through the use of service employees.

Action Items:
Moving forward, employers should:

  1. Carefully assess whether these laws apply to your business (you may wish to consult with a qualified employment attorney);
  2. Explore any possible exemptions or exceptions that may apply to your business; and
  3. Draft and implement policies that are compliant with the laws to prevent violations.

Please contact us with any questions or concerns you may have regarding these issues.

More about Burke Costanza & Carberry LLP

More about Burke Costanza & Carberry LLP

Burke Costanza & Carberry LLP seeks to provide clients with the independent professional judgment, commitment and vision consistent with its leadership position among Northwest Indiana lawyers. The firm takes great pride in its heritage. Formed on January 1, 1988 through the merger of two of Northwest Indiana’s oldest and most distinguished law firms, the firm builds on a tradition of experience and excellence. These roots in the Northwest Indiana community provide the firm with a source of strength and an opportunity for future growth.