Business leaders must address FLSA compliance with the same focus we give to other important strategic, financial and cultural matters.
Bottom line: As far as the FLSA is concerned, an honest mistake is still a mistake--and an expensive one at that.
In the U.S., President Franklin Roosevelt spearheaded the federal charge for the Fair Labor Standards Act (FLSA) that was passed in 1938.
In 2009 an arbitrator ruled that the EEOC had willfully violated the FLSA by giving its non-exempt workers compensatory time rather than paid overtime.
It alleged that his stipend, compared with the hours he worked, fell short of minimum wage standards under the FLSA and New York state law.
In addition, the FLSA provides that the volunteer services cannot be the same type of services that the individual is employed to perform for the agency.
Under the FLSA, a volunteer will not be considered an employee if the individual volunteers for public service, religious or humanitarian objectives, and without contemplation or receipt of compensation.
Under the federal Fair Labor Standards Act (FLSA), prevailing employees can recover double damages for up to three years of lost overtime or other pay, as well as their costs and legal fees.
With respect to the sixth criterion, the payment of a stipend to the interns does not create an employment relationship under the FLSA as long as it does not exceed a reasonable approximation of the expenses incurred by the interns involved in the program.
One of the highest priorities at the U.S. Labor Department is to identify situations in which workers are erroneously considered not to be employees or other covered individuals for purposes of complying with minimum-wage, overtime, and recordkeeping requirements and child-labor restrictions of the FLSA and similar federal wage laws it enforces.
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