Applied Business Law

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Applied Business Law – 27
Individual Work 1
Jessica Gaskins
You are an employee at a nice paper mill and want to impress the boss by burning the midnight oil (but not too close to the wood pulp). For four consecutive weeks, you work forty-five, forty-two, thirty-nine, and thirty-one hours. If you are a nonexempt employee covered by the Fair Labor Standards Act, how many hours of overtime pay, if any, would you be entitled to? What would be the rate? The Fair Labor Standards Act of 1938 is concerned with child labor, maximum hours, minimum wages, and overtime provisions. In this situation we are dealing with overtime. Overtime is when an employee works over forty hours per work week and needs to be paid time and a half for the hours worked. Employees that fall into the category that overtime is due are non-exempt employees who include manual laborers and other blue collared workers who do repeated activity with their hands; this includes nurses and police officers. Professional employees are considered exempt and it is determined by the employers if they will receive overtime pay, but the employers cannot reduce or change the overtime requirement. The paper mill employee is entitled to the overtime pay under the Fair Labor Standards Act. In the four weeks the employee worked he only went over forty hours twice coming to a total of seven hours, five hours one week and two the next. Under the Act the employee is entitled to pay at the hourly rate plus half. As a non-exempt employee the employer can not stray from the rules of the Act.

References
Miller, R., & Holowell, W. (2011,2008). Business law text & exercises. (6th ed., pp. 133-134). Mason, OH: Cengage Learning.
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