Fair Labor Standards Act (FLSA), Scope and Penalties

The main purpose of the enactment of the Fair Laborweek for one or more employers:
Standards Act (FLSA) is to provide the employers and1. Day Workers,
the employees the minimum guidelines and2. Domestic Service Workers or Housekeepers;
requirements on wages and salaries.3. Chauffeurs;
The FLSA requires employers to pay their employees4. Cooks; and
covered by the Act a wage of at least $5.85 per hour5. Full time Babysitters.
(effective July 24, 2007); at least $6.55 per hourThe FLSA provides certain exceptions to the minimum
(effective July 24, 2008); and at least $7.25 per hourwage rule, as in the cases of:
(effective July 24, 2009).1. Student Learners, On-the-job Trainees, Vocational
Also, the Act requires the employers to pay theirEducation Students;
employees below 20 years old a minimum wage of2. Full time students employed in:a. Retail or Service
$4.25 per hour during the first 90 employment days.Firms,b. Agriculture; orc. Educational Institutions; and
Employees may be paid on a piece-rate basis by their3. Employees with disabilities, whether physical or
employers provided they receive the equivalent of themental, as long as their disabilities affect their earning
minimum hourly wage rate prescribed by law.capabilities.
What's more, Tipped employees or those who usuallyVarious remedies are being used by the Department
receive a monthly tip of $30 may consider such tipsof Labor to enforce compliance with the FSLA. Listed
as part of their wages, on the condition that theirbelow are the penalties and probations prescribed by
employers pay them a minimum direct wage of $2.13law for offenders:
per hour.1. For first offenders, the Wage and Hour Division
On the contrary, FSLA does not cover the followinginvestigators usually order the employers to change
institutions regardless of their dollar volume:their employment practices. They will also order them
1. Hospitals;to pay their employees back wages.
2. Care Institutions for the Sick, Aged, Mentally Ill, or2. A willful violator shall be given a fine of not more
Disabled;than $10,000.
3. Special Schools for Disabled Children;3. An offender who has been subject to a second
4. Preschools, Elementary, Secondary, and Tertiaryconviction shall be tried and imprisoned.
Schools; and4. Frequent violators shall be ordered to pay an
5. Federal, State, and Local Government Agencies.additional fine of not more than $1,000 per violation.
The Act also protects the following workers providedThe Department of Labor may also file a lawsuit
they receive a minimum yearly cash wage of $1,500against employers for employees
or provided they work for not less than 8 hours per