Labor contracts may enhance employee requirements guaranteed under the Fair Labor Standards Act, or FLSA; those same contracts, however, may not reduce any benefit or requirement of the FLSA. Contracts for positions that are exempt from FLSA requirements, such as managerial and sales jobs, may deviate from the act. Since its passage in 1938, FLSA has set standards for overtime pay, hours worked and minimum wage.
Overtime Pay
FLSA only requires payment of overtime for nonexempt employees for any hours worked over 40 in a specified workweek. Contrary to popular belief, FLSA does not require overtime pay for work on holidays, Saturdays, Sundays or any other day normally considered a day of rest. The only time FLSA requires a boost in pay for special days is when the working the extra days or hours results in an over-40 situation. Labor contracts may specify supplemental pay for these days, which is an enhancement rather than a violation of FLSA laws.
Minimum Wage
At the time of publication, the nationwide minimum wage stands at $7.25 per hour. State labor laws may increase that figure but may not reduce it. The same holds true of labor contracts. If the starting pay for a certain position calls for less than minimum wage, the U.S. Department of Labor Wage and Hour Division will intervene, forcing compliance of the nation's minimum wage standard.
Vacation Pay
FLSA does not require yearly breaks for vacation, nor does the law require vacation pay. Labor contracts, however, generally specify a certain number of vacation days for a certain number of hours or days worked. Adherence to the contract's vacation stipulations is a matter left to the holder of the contract and the employer.
Sick Leave, Holiday and Severance Pay
Although most labor contracts provide provisions for sick leave, holiday and severance pay, payment is not guaranteed by FLSA. Labor contracts, however, whether for exempt or nonexempt employees, may require payment of any or all of these commonly compensated circumstances.
Payment for Breaks
The only time FLSA requires a break period is when a nursing mother needs to feed her child. Any other break-period requirement is left to parties tasked with negotiation of the labor contract or to state labor laws.
Considerations
In some cases, state labor laws improve upon FLSA, requiring pay for holidays and vacations, as well as mandated break and lunch periods. Check with the office of employment services for information relevant to your state of residence. Although the U.S. Department of Labor's Wage and Hour Division protects employees under FLSA laws, it does not enforce a labor contract negotiated between a labor union and an employer or an individual and his employer.
