Whether you're gainfully employed or looking to be employed, you should be aware that the federal government has passed many laws to protect your rights in the workplace. After you're hired, it's important that you understand your legal rights. And where better to start than with your first paycheck!
Getting paid
The federal Fair Labor Standards Act (FLSA) establishes the minimum wage that employees must be paid and establishes the rules for overtime. As of September 1, 1997, the current federal minimum hourly wage is $5.15. Many states have their own minimum wage and overtime laws for businesses that operate within their borders. Most states match the federal minimum, but some have established lower or higher minimums.
Overtime and comp time
Although you may put in 60 hours per week to get your job done, you can receive overtime pay only if you're classified as a nonexempt worker — someone who is paid by the hour. People in professional, administrative, or executive positions are typically classified as exempt workers because they are usually paid a salary. They therefore don't receive overtime pay; independent contractors, trainees, and apprentices don't either.
If you're eligible for overtime pay, federal law says that whenever you work more than 40 hours in a given work week, you must be paid one and a half times your regular hourly rate for the extra time. Overtime for certain workers such as police officers, firefighters, hospital workers, nursing home employees, and so on is calculated differently because their work "weeks" are often longer than those of other professions. For example, police officers who work a seven-day week receive overtime after 43 hours, while those who work a 28-day period get overtime after 171 hours. Firefighters who work more than 53 hours in a seven-day period are eligible for overtime, and those with a 28-day work period are eligible for overtime after 212 hours.
If you work for a public sector employer, in most cases, when you're eligible for overtime, your employer can offer you comp time — time away from your job that is equivalent to the extra amount you would receive in your check. Usually, you have the right to choose whether you want overtime pay or comp time. If, however, you work in the private sector or for a nonprofit organization, your employer must pay you when you're eligible for overtime; there is no comp time.
Generally, if you believe that you're not being paid according to the requirements of the Fair Labor Standards Act, you can file a complaint with the federal Department of Labor's Wage and Hour Division, which will investigate your complaint. You can contact the main office at Room S302, 200 Constitution Avenue, Washington, D.C. 20210; 202-219-8305 or via their official Web site. You can also sue your employer in state or federal court for twice the amount of the back wages and overtime you are owed.
When do I get my paycheck and why did you take out so much?
All states have laws regulating how and when you must be paid. Most require that you be paid at least twice per month.
When you get your paycheck, you may be surprised to discover that it's not for the amount you had expected. That's probably because you forgot about paycheck deductions. The federal government requires your employer to withhold federal income and Social Security taxes from your paycheck. Your state may make similar requirements of your employer.
Depending on your state, your employer may be allowed to deduct certain expenses from your paycheck, such as pay advances and the cost of job-related tools, equipment, and uniforms, so long as the deductions do not cut into your minimum wage or overtime pay. The same rule applies to instances when an employee working at a retail outlet is held responsible for cash shortages. And if you give your okay, your employee can deduct things like charitable donations, union dues, insurance premiums, and contributions to retirement accounts, even if these deductions do bring your pay below the minimum wage.
 | Most states prohibit employers from docking an employee's pay for disciplinary reasons; however, some states allow employers to deduct money from an employee's paycheck to compensate for monetary losses that the business suffered due to the employee's dishonesty or negligence. These deductions must be spread out over a series of paychecks so that the amount the employee receives during a given pay period does not fall below the minimum wage. |
If you work for tips, federal law says that your employer can pay you less than the minimum wage — half the minimum wage if you make at least $20 per month in tips. But depending on your state, your employer may have to pay you more than half.
The benefits of a job
Being able to pay your bills because you're getting a regular paycheck is certainly the most important benefit of being employed. Depending on the company you work for, however, your job may provide other benefits as well, including a paid vacation, insurance, and a retirement plan. Although most additional job benefits are optional for employers, if they do decide to offer them, employers are usually expected to make the same benefit or benefit package available to all employees within a particular category. An employer may therefore be able to offer different benefit packages to employees in different categories. For example, an employer may offer one set of benefits to all exempt employees and a different benefit package to all executives paid over $150,000 per year.
| Some states require employers to offer their employees health insurance. |
No federal law requires employers to provide their pregnant workers with paid maternity leave. But because pregnancy and childbirth are technically considered disabilities, you can use paid disability leave during your pregnancy or childbirth if your employer offers paid disability leave. Some states require employers to provide up to 16 weeks of unpaid maternity leave.
A required extra job benefit
Under the Family and Medical Leave Act (FMLA), the federal government requires all employers with at least fifty workers as well as most public agencies to allow qualified employees — employees who have worked for them for at least 12 months and for at least 1,250 hours — to take off up to 12 work weeks per year without pay for such things as
- The care of a spouse, child, or parent with a serious health condition
- A serious health problem such as an illness or injury that prevents an employee from working
If you use the FMLA, your employer must maintain your health insurance. You may be asked to reimburse your employer for the cost of the insurance if, at the end of your leave, you decide not to return to work. If you do return, you must be allowed to come back to your old job or to an equivalent one with the same pay and benefits.
While you're on leave, your seniority and other benefits do not accrue, and you cannot collect unemployment insurance. Also, your employer can count your accrued vacation, sick leave, and personal days toward your requested leave of absence.
| You may not be eligible to take advantage of the FMLA if your salary is within your employer's top ten percent pay bracket. If you and your spouse work for the same company and you both want to use the FMLA, you must divide the 12 weeks of leave between you. |
For a fact sheet on the FMLA, write to the Women's Legal Defense Fund, 1875 Connecticut Avenue, NW, Suite 710, Washington, D.C. 20009. To get information and advice on the FMLA and other employment-related issues, call the job hot line of 9 to 5, the National Association of Working Women, at 800-522-0925.
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