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Chapter 2 Understanding Work-Based Learning
Minimum Wage
An FLSA amendment established the creation of a minimum
wage. Minimum wage is the lowest hourly rate of pay that most
employees must receive. Employers, of course, may pay more than
minimum wage, but they cannot pay employees less. The minimum
hourly rate is set by the federal government. It is changed periodically
to meet the needs of inflation and recession.
Some employees are excluded from the minimum wage law by
specific employer exemptions. For instance, food service workers
who earn tips can lawfully be paid less than minimum wage. It is
also lawful to pay employees less during a training period when they
first start a new job. There are special rules for full-time students
and students enrolled in school-based training programs such as
cooperative education.
Overtime Pay
Another FLSA amendment sets guidelines for overtime pay
to employees. Overtime pay must be paid at a rate of at least 1 1/2
times the employee’s regular pay rate. Overtime is paid for each
hour worked in excess of the maximum hours allowed. For example,
suppose an employee who earns $8 an hour works 44 hours in a
workweek. The employee is entitled to at least 1 1/2 times $8, or $12,
for each hour over 40. That person’s pay for the week is $320 for the
first 40 hours plus $48 for four hours of overtime—a total of $368.
regular earnings = $8 × 40 = $320
hours worked overtime = 44 (total hours worked) – 40 (regular hours
per week) = 4
overtime pay per hour = 1.5 × $8 = $12
overtime earnings = $12 × 4 (hours worked overtime) = $48
total weekly pay = $320 (regular pay) + $48 = $368
Saturdays, Sundays, and holidays are treated like any other day of
the week. Employers are not required to pay overtime on weekends
and holidays unless the hours worked exceed the maximum allowable.
Like minimum wage, some employees are exempt from receiving
overtime pay.
Students working in school-based training programs are
considered trainees, not employees. Consequently, this law will not
apply to you during your work-based learning experience. However,
some employers may pay overtime voluntarily.
Equal Pay
An amendment to the FLSA resulted in the Equal Pay Act of 1963.
The Equal Pay Act requires equal pay be given to employees of both
sexes for doing equal jobs. Jobs performed under similar working
conditions that require the same level of skill, effort, and responsibility