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Video Description:
00:01 The Fair Labor Standards Act, or FLSA, is a federal law that sets basic standards for minimum wage and overtime pay.
00:49 By definition, tipped employees are those who customarily and regularly receive more than $30 per month in tips.
For such individuals, the FLSA permits an employer to use these tips as a credit against its minimum wage obligation.
01:55 Most retail employees are also entitled to the minimum wage. Employees paid on a commission basis, or who are paid a commission in addition to an hourly rate, are covered by the FLSA minimum wage rules just as any other non-exempt employee.
02:21 The FLSA overtime rules require that covered non-exempt employees receive overtime pay for hours worked over 40 per workweek at a rate not less than one and one-half times the regular rate of pay.
02:42 Certain retail employees paid on a commission basis either in whole or in part may be exempt from the overtime pay requirements of the FLSA. Three conditions must be met for an employer to use the exemption.
03:30 Unless all three conditions for the retail commissioned employee exemption are met, overtime premium pay generally must be paid for all hours worked over 40 in a workweek at time and one-half the regular rate of pay.
03:43 Keep in mind that a number of states have enacted minimum wage and overtime pay laws, some of which provide greater worker protections than those provided by the FLSA.
