Employee Polygraph Protection Act of 1988

• It is a lie detector test
• with the few exception to " security -sensitive" positions it is unlawful for the employer to use such tests in employment decision
• It provided protection to current and prospective employees.

Prospective employees: A lie detector test can be used for prospective employees

1. Employer provides armored car personnel, security personnel, or security alarm systems to protect electrical, nuclear power plants, storage or radioactive or other toxic material.
2. Employees will have direct access to the manufacture, distribution or dispensation of certain controlled substance.
3. If the employer engages in intelligence function
4. Employer is a federal, state of local govt.

Current employees: Can be done for the current employees during an ongoing investigation of financial loss or injury through theft, embezzlement and misappropriation if

1. Employee has access to the property
   
2. Employer has reasonable suspicion on the employee
3. Employee receives written notification about the investigation and testing prior to the test.

Note :

• Employer cannot terminate solely on the basis that he refused to take that test
• If employee voluntarily accepts to take the test he can terminate the test any time
  

Privacy Act of 1974

• this act aims to protect the privacy of personal information of govt. employees
• signature of the employees is required for release of any information about the individual to someone else
• Federal Sector employees also have the right to know the type of information collected on them , to review the information in their files, to correct or have removed erroneous information and to restrict distribution of the information.
• Act does not currently apply to private employees.
  

Service contract Act of 1965

• Requires any federal service contractor with a contract of $2500 to pay prevailing wages and fringe benefits to its employees
• Provide safe working condition
• Notify employees of the minimum allowable wages for each job classification.
• Those covered by Davis Bacon and Walsh Healey Public Contract Act are exempted from this Act.
  

Walsh Healy Public contract Act -1936

• Applies to govt. contractor ( other than construction ) Industry having a contract of $10,000 to give minimum wage
• These included to manufacturer and suppliers of goods to federal govt.
• it talks about 1.5 times OT in excess of 8 hours a day and 40 hours a week
• The defense authorization Bill of 1986 excluded federal contractor from OT pay requirement after 8 hours of work .In this case 1.5 times to be given only when one work for more than 40 hours in a week.
  

Davis Bacon Act 0f 1931

• Applies to federal construction contractor having a contract of $2000 or more
• Required to give minimum wage to the federal contrator
• these includes to laborer and mechanics.

Fair Labor Standard Act of 1938 ( FLSA)

Nature:

• Ist federal legislation for compensation in private sector
• Administered by wage and hour division of Dept. of labor

Applicability- Two categories

• Enterprise coverage -Having 2 employee with atleast $500,000 sales or employers who are hospital school or govt. agency.
• Individual coverage- Those companies that are involved in Interstate business.

Area of FLSA

• Introduce minimum wage for covered employees
• OT payment
• Identify the criteria that are exempted under FLSA
• Limiting work condition for children
• Record keeping rules

Exempted classification :

• If they are paid more than $ 455 per week .

NB: check the latest amendment and laws regarding exempted categories

• Have supervision of 2 or more full time employees
• Have the authority to hire fire, promote, evaluate
• Performs work that requires specialized knowledge acquired through intellect instruction .
• Those involved in original and creative work
• Those that impart knowledge in school system
• Those that are paid in salary

Minimum wage : Check your state current minimum wage . It varies from state to state.


Overtime:

• For non exempted employee its 1.5 times the regular wage rate, for all compensable time work that exceeds 40 hours in a work week .
• Regular rate of pay includes Basic Pay + non discriminatory bonus, shift premium, production bonus and commission.
• It does not includes discretionary bonus , employees contribution to benefit plans , pays for unworked hours.

Compensatory off or comp off- Public employees compensate with comp off that is 1.5 times the hours worked as OT rather than compensation in cash.
For eg if the worker worked for 20 hours OT then he would get 1.5 * 20=30 hours comp off.

NB: FLSA requires that OT be paid on time worked and not on time compensated. Therefor no OT be paid on sick pay , holiday pay , vacation Pay and jusy duty pay.


Child Labour-

• Children under 14 cannot work under FLSA
• 14-15 age can work in non harzardous , non mining and non farming outside school hours
• they can work not more than 3 hours a day or 18 hours a week in a school days
• Not more than 8 hours on a non school days
  
• Can work between 7.00 am -7.00 pm and in summer from 7.00 am to 9.00 pm.

Record Keeping : It can be positive record keeping or exceptional record keeping.
In positive record keeping actual hours worked, along with vacation, sick and other time off are recorded.
In exceptional only the changes to the regular work schedule are recorded.

Note : Employee Vs Independent Contractor:
An employer has no obligaton under FLSA to self employed independent contractor. Therefore it is critical that organizaton clearly identify which of its workers are employees ( covered by FLSA) and which are independent contractors.

Employee Retirement Income Security Act of 1974

Applicable-

• Those who are 21 years of age
• Employee for the last 12 month and worked for 1000 hours

ERISA Records

Three types of records

1. Summary Plan Description

• Inform about Provision policy and rules of the plan
• Inform about the plan sponsor, administrator and trustees
• Financial sources
• Eligibility
• Disqualifying events
• Claim procedure

2. Annual Report

• Gives financial statements
• No of employees under the plan
• Name and address of the plan fiduciary
• Person compensated in previous years and the amount compensated

3. Report to Participants

• Gives total benefit details
• Gives the details of the amount accrued for the individual and the amount that is not forfeitable

Records maintained

• Records need to be maintained upto 6 years

Vesting –There are 2 types of vesting

• Immediate- 100% is vested when the eligibility is met
• Delayed – could be either cliff or graded .In cliff participants get 100% after specified years . In Graded –Partial vesting is done each year upto the specified years.
  

Enforcement and Jurisdiction

• Department of labour
• Internal revenue Services
• Pension benefit guaranty corporation