Assignment 1: Legal Compliance
The Fair Labor Standards Act (FLSA) of 1938—also called the Wages and Hours Bill—is a federal law protecting the employee’s right to compensation for work performed. It established the national minimum wage and guaranteed overtime, and prohibited the employment of minors. While organizations are expected to abide by the Fair Labor Standards Act (FLSA) of 1938, in many cases, the definition of what constitutes an exempt versus nonexempt employee is questionable or open to interpretation. This can and does have serious consequences for the employer when employees are found to have been misclassified.
Use the textbook, the Argosy University online library resources, and the Internet to research the provisions of the Fair Labor Standards Act (FLSA) of 1938 and related cases. Select an example of a company that mislabeled a nonexempt employee as exempt or mislabeled an exempt employee as nonexempt. Write an analysis, including the following:
- Summarize the example you selected, including a description of the issue and an exploration of its cause.
- Explain the implications of mislabeling for both the employee and the organization.
- How could such a situation be avoided in the future?
- By Saturday, October 24, 2015, post your responses to this Discussion Area.
- Through Wednesday, October 28, 2015, respond to at least two of your classmates’ posts who chose perspectives different from yours. Participate in the discussion by asking a question, providing a statement of clarification, providing a point of view with a rationale, challenging an aspect of the discussion, or indicating a relationship between one two or more lines of reasoning in the discussion.