Posts Tagged ‘FLSA’

Internships: Paid or Unpaid?

Thursday, March 24th, 2011

With daydreams about laying by the beach and warm, hot summer days looming in the near future, comes the burning staffing question: are we going to need student interns who are on their summer break and (quite possibly more important) do we have to pay them?

As defined by the Fair Labor Standards Act (FLSA), internships with “for-profit” private companies are most likely viewed as employment (i.e. “suffer or permit to work), thus being considered non-exempt from minimum wage and overtime compensation requirements.  However, there are a few circumstances where internships in “for-profit” private companies may be unpaid.  The Department of Labor applies the following six criteria when determining whether an unpaid internship is legal:

  1. The internship, even though it includes actual operation of the facilities of the employer, is similar to training in which would be given in an educational environment;
  2. The internship experience is for the benefit of the intern;
  3. The intern does not displace regular employees, but works under close supervision of existing staff;
  4. The employer that provides the training derives no immediate advantage from the activities of the intern; and on occasion its operations may actually be impeded;
  5. The intern is not necessarily entitled to a job at the conclusion of the internship; and
  6. The employer and the intern understand that the intern is not entitled to wages for the time spent in the internship.

Are you abiding by the Fair Labor Standards Act with your summer interns?

Employee Bill of Rights- Happy 4th of July!

Friday, July 2nd, 2010

In honor of the 4th of July holiday let’s take a moment to celebrate our rights as citizens here in the United States and also discuss what rights employees have the workplace.

1) Employees have the right (confirmed by a number of state and federal laws) to not be discriminated against or harrasssed in the hiring process and in the workplace.

2) Employees have the right to be paid for work completed and to have meal and rest periods as appropriate (the Fair Labor Standards Act and individual state law defines wage payment along with meal and rest periods).

3) Unless under contract employees have the right to leave employment that does not suit them (employers also have the right to fire employees “at will”  in most states except when under contract or because of discrimination or retaliation).

4) Employees do not have the right to paid holidays, sick time or vacation pay under federal Law (FLSA). Some states do provide for paid time off.   Check out the your state’s Department of Labor website  more information on paid leave laws.   Employees do have the rights to unpaid leave under Family Medical Leave Act (FMLA) and some state laws.

5) Employees have the right to reasonable accomodations for disabilities  under the Americans With Disablity Act (ADA).

Happy 4th of July to all employees and employers!

90 New Regulations…coming soon from the Department of Labor

Thursday, December 17th, 2009

dolWage and hour law continues to be a hot topic for our clients. Just when we  have learned how to deal with that last batch of new regulations on paying employees, record-keeping and employee classification the  Department of Labor will be proposing 90 new regulations in the coming months. A complete list of the regulatory agenda can be found at http// The  DOL has named 12 “specific strategic outcomes” it is seeking with the package.

The outcomes include “increasing workers’ incomes and narrowing wage and income inequality”; “securing safe and healthy workplaces, wages and overtime, particularly in high-risk industries”; “assuring skills and knowledge that prepare workers to succeed in a knowledge-based economy”; “helping workers who are in low-wage jobs or out of the labor market find a path into middle-class jobs”; and ensuring workers have a voice in the workplace.” Facilitating unionization is the point of another rule that will be proposed. The Office of Labor-Management Standards will draft a regulation requiring greater disclosure by employers of consultants that they hire to advise them on union organizing campaigns.

If you are looking for updates and guidance on wage and hour law, attend one of KPA’s free webinars- Essentials of Wage and Hour Law for Dealerships, Advance Wage and Hour Law or California Wage and Hour Law presented by leading employment and labor attorneys, John Boggs of Fine, Boggs and Perkins and Jim Hendricks of Ford & Harrison, LLP.

Additional informationon the OSHA regulations that are part of the agenda can be found on Patric’s post from December 11th.

HR software and compliance surfacing as a top priority?

Friday, December 4th, 2009


Wage and hour law has certainly been top interest the last few weeks. In my last blog I wrote about the Department of Labor hiring 250 new wage and hour investigators. At the same more than 700 people registered for our educational Wage and Hour webinars. And our very happy sales director Todd Hotham informed me this morning that last month 24 dealerships signed up for our online HotlinkHR software which is specifically designed to help avoid the most common HR and Wage and Hour Law mistakes.

Fact is that employers today are highly vulnerable with the increased awareness by workers of their rights, the complexity of wage and hour law (Fair Labor Standards Act) and the stated goal by the Department of Labor of increased enforcement. In fact, both webinar speakers, leading labor lawyers John Boggs of Fine, Boggs & Perkins, and Jim Hendricks of Ford & Harrison, empasized that Wage and hour litigation — specifically FLSA overtime collective action — far outpaces employment discrimination class action filings. In fact, there are more wage and hour lawsuits pending in the federal courts than all other employment claims combined.

I’d like to hear your feedback on this topic: are wage and hour law and methods to migitate associated risks surfacing to be a top priority?

Please leave me your comments below.