Wage and Hour Laws
The Fair Labor Standards Act (FLSA), passed by the Congress in 1938, is applicable to employers involved in interstate commerce, directly or indirectly, and some certain types of businesses. FLSA provisions regarding maximum hours standardize a work week of 40 hours for particular workers. These workers are to be paid an overtime of 1.5 times the workers’ normal pay rate for all hours worked above the standard 40 hours. The act constitutes two main categories of employees; exempted and non-exempted. It is mandatory for employers to pay overtime to non-exempt employees.
In the given scenario, Calzoni Boating Co. is an interstate business engaged in manufacturing and selling boats. Thus, the provision of FLSA is binding on the company. The representatives of the five hundred nonunion employees at Calzoni Boating Co. are requesting a four-day, ten-hours-per-day workweek. Calzoni concern about paying the overtime to the employees based on the representative request is natural.
However, the FLSA overtime laws apply only to those employees that have worked more than forty hours per week. In other words, the employees who work for ten hours a day, four days per week, are not subject to overtime pay because they have not worked more than forty hours per week (Miller & Jentz, 2010). This means that in fact the act doesn’t require paying overtime if the employees’ proposal is accepted.
Thus, under the Federal overtime law Calzoni is not required to pay the employees’ overtime if it accepts their proposal and so it doesn’t need to be concerned about overtime payments.
Miller, R.L. & Jentz, G. A. (2010). Business Law Today: The Essentials. (9th ed.). Mason, Ohio: South-Western College.