Employment Laws for Clapton Commercial Construction

Employment Laws for Clapton Commercial Construction

HRM/531

11/18/2013

Dr. Sam OBeng-Dompreh

Employment Laws for Clapton Commercial Construction

In order for Clapton Commercial Construction to expand into another state there are important employment laws we need to address, consequences of noncompliance to consider, and plans to develop in order to stay compliant with these laws to be successful.

Fair Labor Standards Act

The first law we need to consider is the Fair Labor Standards Act. According to "The Fair Labor Standards Act (flsa)" (n.d.), “It requires employers to pay covered employees who are not otherwise exempt at least the federal minimum wage and overtime pay of one-and-one-half-times the regular rate of pay”. The minimum wage is different in some states and if the state minimum wage is more the federal minimum wage companies are to follow the state in which the company resides. The company is currently located in Michigan where the minimum wage is $7.40 for employers and overtime is required for time that is worked beyond the 40 hour work week (Doyle, n.d.). In Arizona where the company plans to expand into, the minimum wage is $7.80 and is increased annually based on cost of living formula. Overtime goes by federal law which mandates that companies pay employees time and a half for any hours worked over 40 hours per work week. It also does not make mandatory overtime illegal, so this does not limit the total number of hours the employee works per week (Doyle, n.d.). Consequences for not complying with these laws will result in penalties to the company that would include the employees’ outstanding wages, as well as penalties that could be twice the amount of the unpaid wages, and attorney fees that the employee incurred to receive their wages ("Lustig & Associates - Fair Labor Standards Act", n.d.). In order to be certain Clapton Commercial Construction is in compliance with this law, the minimum pay in Michigan will...