What Is the Fair Labor Standards Act? 

While all industries have a duty to protect their employees, doing so is often more important in the healthcare field. Medical workers have seen extreme difficulties in recent years, and it’s the Fair Labor Standards Act (FLSA) that ensures they’re treated right. This law can do anything from ensuring emergency room workers get overtime pay to guaranteeing physical therapists receive a fair wage. 

If the government finds your office in violation of the FLSA, you could face serious consequences that bankrupt your practice. This is why it’s essential to understand this and similar regulations — or have human resource professionals who can help. 

What Is the FLSA?

The Fair Labor Standards Act is a federal law that was passed in 1938. Its goal was to protect employees from unfair work standards and pay practices. There have been many changes to the statute over the years, and it’s the duty of employers to ensure they remain compliant with the law regardless of updates. 

There are several employment practices regulated by the FLSA, and employers across the spectrum must follow the rules. Whether you’re a private practice chiropractor or you run a hospital for the local, state, or federal government, you must comply with the following rules: 

• FLSA Minimum Wage: Employers must abide by federal and state minimum wage laws (whichever is higher). 
• FLSA Overtime: Employees must receive overtime pay if they work more than 40 hours a week. 
• Hours Worked: Whenever an employee is on duty, on an employer's premises, or at their prescribed office, this falls under their hours worked. 
• Record-keeping: The FLSA requires employers to display the obligations under the law where employees can see them. 
• Child Labor: There are various requirements in place to protect minors in your practice.

The Fair Labor Standards Act may have once focused on protecting employees during the Industrial Revolution, but it has evolved as times have changed. Of course, the FLSA doesn’t cover every employee. It’s important to understand exempt designations to stay within the confines of the law. 

Fair Labor Standards Act Exempt Employees

The FLSA only covers nonexempt employees. If a nurse is an exempt employee and ended up working 70 hours a week due to the coronavirus pandemic, for instance, there would be no requirement for their employer to offer overtime pay under this law. Many employers still offer these benefits, but they’re not required if an employee is exempt. 

Exempt Employees Under FLSA

An employee qualifies as exempt under the Fair Labor Standards Act if they meet the following criteria: 

• Their pay is at least $455 per week or $23,660 per year. 
• Employers pay wages on a salary basis rather than hourly. 
• Must engage in exempt job duties

Nonexempt Employees Under FLSA

Healthcare employers who have nonexempt employees — meaning they do not meet FLSA exemption requirements — are eligible for all protections under the law. Keep in mind that other statutes — such as the FFCRA— provide added safeguards for employees. It’s essential that you understand all employee protections. 

FLSA Penalties

If healthcare employers do not comply with Fair Labor Standards Act requirements, they could face several negative and costly consequences. In addition to employee lawsuits, the Department of Labor (DoL) could also take the following measures: 

• Require payment of back wages. 
• The Secretary of Labor could sue for damages. 
• File injunctions to prevent further violations. 
• Charge financial and potential criminal penalties.

These penalties can become very expensive, dependent on the magnitude of infractions. The DoL can even block shipments from employers if they’re found to have violated the FLSA. 

Stay Within Fair Labor Standards Act Guidelines

Whether you’re an optometrist with a single employee or the administrator of a large medical practice, there’s a good chance your team members have FLSA protections. While certain individuals are exempt, it’s important that you make sure you're right about their designation. Failure to do so or violation of other Fair Labor Standards Act requirements could destroy your practice.