When first enacted in 1938, the Fair Labor Standards Act (FLSA) affected about 20 percent of the workforce. Now it applies to more than 90 percent of the U.S. workforce (WorldatWork, 2015, p. 112). It originally established minimums for wage, overtime, recordkeeping and protected child laborers. While it has seen a number of updates and some areas have been expanded, it still focuses on those same basic issues. The Equal Pay Act of 1963 and Title VII of the Civil Rights Act of 1964 were enacted “to ensure the fair treatment of specific segments of the population in regard to their rights as individuals and employees” (WorldatWork, 2015, p.138).
Employers that are not compliant with government regulations and provisions might find themselves in the middle of a lawsuit or subject to enforcement by the Department of Labor Wage and Hour Division (DOL) or by the Equal Employment Opportunity Commission (EEOC). Compensation managers and HR professionals prevent the liability and expense of violating the law while continuing to ensure the equal treatment of employees.
In this paper, you will consider the role of the government as an employer, governing body, and job market influencer. You will also examine the impact FLSA penalties have on recruitment, development and retention.
Evaluate how FLSA penalties can affect an executive’s ability to recruit, develop, and retain top talent.
Analyze how the government, as part of the employment relationship, affects company growth and profitability.
