FAIR LABOR STANDARDS ACT FLSA

1. FAIR LABOR STANDARDS ACT (FLSA) PARTNERSHIP IN COMPLIANCE

2. COVERAGE $500,000 ADV Interstate Commerce (Credit Cards) Named Industries include: Hospitals Nursing Homes Preschool/Daycare Any Public or Private School Any Public Entity (State & Local Government) NOTE: Grandfather Coverage applies to any Construction business or Dry-cleaning establishment in business before April 1, 1990.

3. FLSA DOES NOT REQUIRE: Vacation, Holiday, Severance, or sick pay; Meal or rest periods, Holidays off; Premium pay for weekend or Holiday work; Pay raises or Fringe Benefits; and A discharge notice, reason for discharge, or immediate payment of final wages to TERMINATED employees.

4. MINIMUM WAGE IS $5.15/HR Tipped employees are still paid $2.13 per hour, but must receive at least $3.02 per hour in tips as of 9/1/97 Deductions for uniforms, tools, shortages, etc... must not cut into the minimum wage. Employee’s paid on a piece rate, daily rate, or flat rate basis must receive at least the current minimum wage.

5. YOUTH OPPORTUNITY WAGE Must be under 20 years old. Must pay $4.25 or higher. “Initial” 90 days only. Can be “initially” employed by more than one employer. 90 calendar days, counted from the first day of work. 90 days continues to run even if the employee quits and later returns.

6. Youth Opportunity Wage continued: Employee must be raised to $5.15 per hour on birthday or 91st day. Displacement is prohibited.

7. CHILD LABOR MINIMUM AGE FOR EMPLOYMENT IS 14 YEARS OLD. Youths 16 and 17 years old may perform any non-hazardous job, for unlimited hours. Youths 14 and 15 years old may work outside school hours in various non-manufacturing, non-mining, non-hazardous jobs under the following conditions:

8. 14 and 15 year old hours and time standards: DURING SCHOOL No more than 3 hours on a school day. No more than 18 hours in a school week. Work may not begin before 7:00 a.m. Work may not end after 7:00 p.m. DURING SUMMER (June 1 - Labor Day) No more than 8 hours per day. No more than 40 hours per week. Work may not begin before 7:00 a.m. Work may not end after 9:00 p.m.

9. PERMITTED OCCUPATIONSFOR 14 & 15 YEAR OLDS Office and clerical work (including operation of office machines). Cashiering, selling, window dressing, and price tagging. Bagging, carrying out groceries and retrieving grocery carts (non-powered). Packing and shelving (in non-manufacturing industries and other than in a warehouse or storage area). delivery work by foot, bicycle, public transportation. Clean up work involved in general maintenance (including the use of vacuum cleaners and floor washers) and not involving repair work dishwashing assembling orders Kitchen work and other work included in preparing and serving food and beverages and the operation of machines and devices used in the performance of such work (unless expressly prohibited). Car Washing and polishing Operating gas pumps and performing other courtesy services.

10. PROHIBITED OCCUPATIONS FOR 14 AND 15 YEAR OLDS Any manufacturing occupation Any mining occupation Most processing occupations (such as commercial laundries, dressing poultry, filleting of fish, cracking nuts, etc..) Public Messenger Service Operation of tending or hoisting apparatus or of any power driven machinery (not otherwise permitted) Any occupations found and declared to be hazardous.

11. Prohibited occupations for 14 and 15 year old minors connected with: Transportation Warehousing and storage Communications and Public Utilities Construction Work performed in or about boiler or engine rooms Maintenance or repair of the machines or equipment Outside window washing cooking and baking Operating, setting up, adjusting, cleaning oiling, or repairing food slicers and grinders, good choppers and cutters and bakery type mixers Work in freezers and meat coolers and all work in preparation of meats for sale Loading and unloading goods to and from trucks, railroad cars or conveyors. All occupations in warehouses except office and clerical work

12. HAZARDOUS OCCUPATIONS 1. Manufacturing and Storing Explosives 2. Motor-vehicle driving and out-side helper 3. Coal Mining 4. Logging and Saw-Milling 5. Power-Driven Woodworking Machines 6. Exposure to Radioactive Substances 7. Power-Driven Hoisting Apparatus 8. Power-Driven Metal Forming, Punching, and Shearing Machines 9. Mining other than Coal Mining 10. Slaughtering, or meat-packing, processing or rendering. 11. Power-Driven Bakery Machines 12. Power-Driven Paper-Products Machines 13. Manufacturing Brick, Tile, and Kindred Products 14. Power Driven Circular Saws, Band Saws and Guillotines 15. Wrecking, Demolition, and Ship- Breaking Operations 16. Roofing Operations 17. Excavation Operations

13. PREVENTION: Know the Law Ensure All Employee’s are trained Ensure records are accurate (including DOB) Identify minors with colored tags/time cards Monitor the tasks performed and hours worked of minors Identify all possible hazardous jobs Use disciplinary action where necessary

14. PENALTIES: EMPLOYERS WHO VIOLATE THE CHILD LABOR LAWS MAY BE SUBJECTED TO A CIVIL MONETARY PENALTY OF UP TO $10,000 FOR EACH VIOLATION.

15. COMMON VIOLATIONS: Failure to train supervisors concerning child labor laws Failure to inform minors concerning child labor rules (and the consequences of violating them). Failure to keep proper records.

16. HOURS WORKED “Suffer or Permit to work” Duty of Management to control/set hours of work. Waiting Time (Engaged to wait/ waiting to be engaged) On call time (use time for self? restrictive? beeper?) Meal periods - at least 30 minutes, free and clear Required meetings are hours of work

17. TRAVEL TIME Ordinary home to work travel is not hours of work Emergency call-back travel time is hours of work Home to work on a special one-day assignment in another city is hours of work

18. TRAVEL TIME CONTINUED: Travel from job site to job site during the workday, must be counted as hours of work Travel away from home is clearly work time when it cuts across the employee’s workday. The time is not only hours worked on regular working days during normal working hours but also during the corresponding hours on nonworking days

19. TRAINING TIME Attendance is outside of regular work hours, AND Attendance is in fact voluntary, AND Training is not directly related to the employee’s job,* AND Employee’s do not perform productive work. * Training directly related to the employee’s job is training designed to make the employee handle the job more effectively, as distinguished from training for another job or a new/additional skill (i.e., stenographer who takes a bookkeeping course.)

20. OVERTIME Due at Time and one-half the employee’s regular rate of pay. Due after 40 hours of work per week. Each work week stands alone. Regular rate includes: commissions, bonuses, piece rates, day rates, multiple rates. Two rates of pay = weighted average.

21. WEIGHTED AVERAGE: 35 hours X $8.00/hr = $280.00 10 hours X $6.50/hr = $ 65.00 Total Straight time = $345.00 $345.00/45 hrs wkd = $7.67/hr. RR $7.67/2 X 5 OT HW = $19.18 OT $345.00 + $19.18 = $364.18 DUE

22. Overtime on a Salary Basis Salary is $500.00 per week. Employee worked 45 hours this week. $500.00 / 45 hours worked = $11.11 reg. rate $11.11 / 2 (1/2 T rate) X 5 OT HW = $27.77 OT $500.00 + $27.78 = $527.78 total due Note: The regular rate changes each week depending on the number of hours worked.

23. Partial Overtime Exemptions: 7(i) Commissioned Employees: Business must be exclusively retail, and More than half of the employee’s earnings must be from commissions, and All of the compensation divided by the hours of work must equal or exceed time and one-half the current minimum wage. 7(j) Nursing Homes/Hospitals: Overtime pay is due after 8 hours in a day and 80 hours in 14 consecutive days. 7(k) Special State and Local Government

24. 541 EXEMPTIONS:EXECUTIVES & MANAGERS SUPERVISES TWO OR MORE EMPLOYEES, THE EQUIVALENT OF 80 EMPLOYEE HOURS OF WORK EACH WEEK. PRIMARY RESPONSIBILITY IS MANAGEMENT OR SUPERVISION PAID ON A SALARY BASIS OF AT LEAST $250 PER WEEK.

25. ADMINISTRATIVE EXEMPTION PERFORMS OFFICE OR NON MANUAL WORK DIRECTLY RELATED TO MANAGEMENT POLICIES OR GENERAL BUSINESS OPERATIONS OF THE EMPLOYER OR THE EMPLOYER’S CUSTOMERS (NON PRODUCTION WORK.) WORKS UNDER GENERAL SUPERVISION CUSTOMARILY AND REGULARLY EXERCISES DISCRETION AND INDEPENDENT JUDGMENT. REGULARLY AND DIRECTLY ASSISTS THE EMPLOYER OR AN EXECUTIVE OR MANAGER PAID ON A SALARY BASIS OF $455 PER WEEK.

26. PROFESSIONAL EXEMPTION Has knowledge of an advanced type is a field of science or learning customarily acquired by a prolonged course of specialized intellectual instruction, or work is original and creative in an artistic field, or is engaged in teaching, tutoring, instruction, or lecturing. Consistently exercises discretion and independent judgment. work is predominantly intellectual. Computer professional - must be paid an hourly rate of at least $27.63, or is paid on a salary basis of at least $455 per week.

27. SALARY BASIS OF PAYMENT PAID WITHOUT REGARD TO QUANTITY OR QUALITY OF HOURS OF WORK. DOCK IN FULL DAY INCREMENTS ONLY IF THE EMPLOYEE IS ABSENT FOR PERSONAL REASONS THE EMPLOYER MUST HAVE A BONA FIDE SICK LEAVE PLAN IN THE INITIAL AND TERMINAL WEEKS YOU MUST MAKE PROPORTIONAL PAYMENT.

28. RECORD KEEPING: All non-exempt employees must keep an accurate record of hours of work. There must be a daily/weekly record of hours of work. Each employee’s time record must have the pay period date and a full name. Overtime hours and regular hours must be recorded separately.

29. Record Keeping Requirements continued: FLSA, EPPA, and FMLA posters must be displayed. You must keep time records for two years. You must keep payroll records for three years. Statute of limitations is 2 years, unless violations are willful, repeated, etc..

30. Fair Labor Standards Act (FLSA) U.S. Department of Labor Wage and Hour Division 1750 Elm St. Suite 111 Manchester, NH 03104 (603) 666-7716