Question

M4:

Research current payroll laws and post important information that you need to know in regards to payroll laws.

200 words or more

Answer 1

Payroll laws in USA are governed by the FLSA – Fair Labor Standards Act. FLSA governs and covers different payroll related aspects like current minimum wage, minimum employees required, exempt employees, non-exempt employees, overtime, child labor laws, tipped wages, hours worked, etc.

The FLSA is a federal law and it sets minimum wage, overtime, and minimum age requirements for employers and employees. As per this law two classifications of employees have been set – exempt employees and non-exempt employees.

It should be noted that FLSA is not the sole payroll law in USA. In fact several US states have enacted and implemented their own law. These laws will differ from state to state and some states may have higher minimum wages rate (than compared to rates prescribed by FLSA), may have more stringent overtime rules, and may even have different child labor requirements as well.

As per FLSA the current federal minimum wage is $7.25 and the current federal minimum wage for tipped employees is $2.13. Failure to comply with the provisions of minimum wage as set by the authorities can lead to monetary penalties for the concerned organization and employer and can even lead to imprisonment depending on the seriousness and gravity of the violation that has been done by the organization or the employer.

(214 words)