FLSA Regulations Recruiters Need to Know
What is the FLSA?
The Fair Labor Standards Act (FLSA) is a federal law in the United States that establishes minimum wage, overtime pay, record keeping, and youth employment standards affecting most employees in the US. International recruiters who are hiring in the US should also know that the FLSA dictates when and how often US workers need to be paid to remain compliant in the US. It’s important for recruiters to be familiar with the FLSA and adhere to the requirements to avoid legal risk and other potential implications.
Minimum Wage Requirements
The federal minimum wage contained within the FLSA is one of the most important points a recruiter should be aware of. The federal minimum wage in the US is currently $7.25 and has not changed since 2009. Recruiters should ensure that the employers they are recruiting for are planning on paying their new hire at least the federal minimum wage as mandated by the FLSA.
Although the federal minimum wage has remained at $7.25, many individual states in the US have enacted their own minimum wage requirements. For example, California has a state-wide minimum wage of $15.50 and New York’s is $14.20. To get even more specific, certain cities in New York state have their own minimum wages that differ slightly from the state-wide $14.20. It’s important for recruiters to note that exemptions to the minimum wage are possible (e.g. salaried executive, administrative, or outside sales employees). Minimum wages in the states are always changing to keep up with local economies.
It’s beneficial for international recruiters to be knowledgeable about these wage laws, but the most important point to understand is that the required minimum wage varies depending on where the worker is located within the US.
Dive deeper into the FLSA wage requirements
Overtime Pay Regulations
Along with the federal and state minimum wage laws, recruiters should be aware of the overtime pay requirements of the FLSA. According to the law, non-exempt employees who work more than 40 hours in a week are entitled to receive time-and-a-half pay for each hour over 40. The FLSA does not limit the number of hours worked in a week by US employees over the age of 16. Overtime pay for work on weekends or holidays is not required by the FLSA, unless overtime is worked on those days.
International recruiters can do their part in ensuring compliance by checking that the employers they are recruiting for have systems in place to accurately track employee hours and compensate them fairly for any overtime hours worked.
Labor Laws in the US vs UK
International recruitment companies should understand that the FLSA is unique to the US and many of the regulations set forth most likely differ from the employment laws in the country they’re based in. For example, the United Kingdom has numerous labor laws regarding working time, health and safety in the workplace, equality, leave and pay for employees. The UK has similar regulations regarding overtime pay, but child labor laws are different in some respects. The FLSA has strict guidelines for child labor (e.g., limits on the number of hours that children under the age of 16 can work and prohibits them from working in certain occupations that are deemed to be dangerous).
Although some of the laws in the UK may be comparable to FLSA regulations, international recruiters should understand that even slight differences are significant when it comes to hiring contractors or employees in the US. Recruiters who are familiar with FLSA regulations are in a better position to succeed in scaling their recruitment operations in the US. By staying knowledgeable and compliant, recruiters can focus on seeking the best talent and play a vital role in ensuring that employers are complying with the FLSA.
Ensure Compliance with an EOR
Compliance must be a top priority when expanding recruitment operations in the US. International recruiters should keep in mind that employment laws in the US are always evolving and vary from state-to-state. The FLSA is a federal law, but many individual states and municipalities have their own sets of laws and regulations when it comes to compensation and employee rights.
International recruitment agencies may consider working with an EOR when scaling their US operations, because an EOR helps mitigate legal risk and ensure compliance with all local labor laws in the US.
Disclaimer: This post is provided for informational purposes and should not be considered legal advice, the final word on this topic or a political opinion.