35: The Fair Labor Standard Act With Matt Johnston
Favorite and frequent guest Matt Johnston returns to Build Value By Choice this week to chat to host Nana Bonsu about the FLSA (Fair Labor Standards Act). Find out which jobs are exempt from overtime, how much they need to earn to be exempt, and what the consequences can be for business owners if they don’t pay the right overtime.
KEY TAKEAWAYS
The Fair Labor Standards Act of 1938 is a United States labor law that creates the right to a minimum wage, and “time-and-a-half” overtime pay when people work over forty hours a week. It also prohibits employment of minors in “oppressive child labor”.
Some jobs may be exempt from overtime laws. The most common exemptions are EAP (executive, administrative and professional). Somebody who is going to be exempt has to earn a minimum weekly salary of $684 per week pre tax.
To qualify for the EAP exemption, an employee must be paid on a “salary basis,” rather than on a per hour basis. That is, an EAP employee must receive a predetermined and fixed payment that is not subject to reduction due to variations in the quantity or quality of work.
There can be hefty government fines and you open yourself up to legal action if you don’t pay the correct overtime.
BEST MOMENTS
‘If they work over 40 hours in one week, then overtime is required’
‘If you don’t pay overtime, you’ll have to pay that back over time’
EPISODE RESOURCES
www.mattthelawyer.com
Build Value By Choice Podcast Episode #8 with Ray Croff
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ABOUT THE GUEST
Matt Johnston (#Mattthelawyer) is a Frederick, MD-based attorney whose practice focuses on serving small businesses with their needs using a variety of services geared to a small business budget. Matt helps clients solve business and legal problems with practical, actionable, and understandable legal advice. Matt and his team also help clients protect their brands and intellectual property through trademark and copyright services. Matt is also a part-owner of a music production company but doesn’t play an instrument. When not lawyering, Matt can be found playing, watching, refereeing, screaming, arguing, or occasionally crying about soccer.
PODCAST DESCRIPTION
Hosted by Nana Bonsu of Infinite Horizons, this show aims to serve small business owners who want to grow their businesses while reducing their own personal involvement. We do this through a combination of interviews with industry leaders, and host presentations. We are certified value builder advisors and leverage a statistically proven methodology to help clients such as you scale or transition their business to the next chapter.
We care for our listeners and see their dreams as our own. We aim to foster a community that embraces freedom, generosity, and integrity. This is a show by entrepreneurs and business owners for entrepreneurs and business owners.
ABOUT THE HOST
Nana Bonsu:
“I am an entrepreneur and ex-Corporate Executive who’s applying his experience and knowledge from working in various ways to pursue my passion of helping small business owners increase their choices in life by leveraging my knowledge and experience, their employees, systems and money. I help small business owners transform their business and increase value through action-oriented education and implementation of strategies and tactics to make their business sellable even if they are not planning on selling. Known for establishing an environment for personal growth and development. My multicultural background equips me with the intuitive understanding of different cultures and how they impact business owners.”
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