CHAPTER 5

COMPENSATION

INTRODUCTION

The Fair Labor Standards Act of 1938 (FLSA), Title 29 United States Code Sections 201–219, provides for minimum standards for both wages and overtime entitlement and spells out administrative procedures by which covered work time must be compensated. Included in the Act are provisions related to child labor, equal pay, and portal-to-portal (home-to-work, work-to-home) activities. In addition, the Act exempts specified employees or groups of employees from the application of certain of its provisions.

MINIMUM WAGE AND OVERTIME

Basically, two types of employees exist under the FLSA—workers who must be paid overtime for all time worked over forty hours in a workweek, called nonexempt, and workers who are not paid ...

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