Frequently Asked Questions about Federal Laws and Regulations
Most recent update: August 2008
The following information is offered as general information only; it is not intended to be legal, technical or professional advice. Although NRHA has made every effort to assure accuracy and currency, we cannot be held responsible for errors or omissions or for agency interpretations or application or for changes in regulations.
The information relates to federal laws and regulations only. There may be state and/or local laws and regulations that would also apply. If you have a question that is specific to your business, we suggest you consult an attorney, accountant or other professional for guidance in your specific situation. You can also check the Website for the federal agency involved or go to www.FirstGov.gov which is a portal to federal, state and local government laws and regulations.
Q. What kind of breaks, time off, vacations and the like are required by federal law?
A. The Fair Labor Standards Act (FLSA) regulates a lot of employee benefits and pay – prime example is the minimum wage – but there are a number of employment practices the FLSA does not regulate. For example, the FLSA does not require vacation, holiday, severance or sick pay; meal or rest periods; vacations or holidays off; premium pay for weekend or holiday work (other than overtime beyond 40 hours a week); pay raises or fringe benefits; discharge notices, reasons for discharge or immediate payment of final wages to terminated employees.
FLSA does not limit the number of hours in a day or days in a week an employee may be required or scheduled to work, including overtime hours, if the employee is at least 16 years old. However, some states have laws covering some of these issues. Matters not covered by the FLSA are generally left for agreement between the employer and the employees or their authorized representatives.
More information at www.dol.gov .
Q. What are the rules about paying employees for travel time and time spent away from the store on business? I’d like to let some of my employees go to seminars or wholesaler markets and I need to know how to figure hourly time and travel expenses like mileage, meals, lodging and entertainment.
A. Generally all travel time on day trips out of town except meal periods is considered work time. This includes air travel to and from the destination, commuting time at the destination and time spent at a seminar or market. It may not be necessary to pay for socializing after the official hours of the event, but it might be a good employee relations tactic. If the trip involves an overnight stay, you must count travel during normal working hours no matter what the day of the week. Commuting time between the employee’s home and the event location or airport is not paid because it is considered home-to-work-travel.
More information at www.dol.gov .
The employee should be reimbursed for expenses incurred on the employer’s behalf. Generally, follow Internal Revenue Service rules on expenses for mileage, meals, lodging and entertainment.
More information at www.irs.gov .
Q. Are employers required to pay employees for time spent on training beyond regular work hours if the training is mandatory?
A. The short answer is yes. Under federal wage and hour rules, mandatory training and staff meetings are compensable activities. If training time is mandatory, whether done during or outside normal working hours, the time must be counted as hours worked and employees must be paid for the time. If training time is voluntary, the time does not need to be counted as hours worked and, therefore, employees would not need to be paid for that time.
This brings up the matter of overtime. If the time spent on training pushes employees’ hours worked over 40 hours a week, they could qualify for overtime.
More information at www.dol.gov .
Q. How many hours can teenagers work? Does it make any difference if they are family members?
A. Federal law allows youngsters aged 14 and 15 to work up to eight hours a day or 40 hours a week during summer recess; otherwise their time is limited to three hours on a school day or 18 hours in a school week. Sixteen and 17-year-olds can work unlimited hours but are not allowed to perform hazardous duties such as driving a car or truck, using power tools or operating paper balers or box compactors. At age 18, teenagers can work unlimited hours doing the same job duties as older workers, assuming they are trained and qualified for those duties. State laws may be more restrictive.
It’s a good idea to follow the same laws for family members as for other young employees.
More information on federal child labor laws at www.youthrules.dol.gov. Information on state labor laws at www.dol.gov/esa and click on State Labor Laws.
Q. Is there a lower minimum wage for high school students?
A. The FLSA provides for a sub-minimum wage for full-time students. It is set at 85% of the prevailing minimum wage. It is available for full-time students enrolled at a bona fide educational institution and working in retail or service establishments, on farms or at institutions of higher education.
In order to pay the sub-minimum, employers must receive a certificate from U.S. Department of Labor indicating sub-minimum jobs are not replacing employment opportunities for full-time employees.
A 1996 amendment to the FLSA created an opportunity wage of $4.25 per hour for the first 90 days of employment for employees younger than 20 years.
More information at www.dol.gov .
Q. What is a living wage? Is it the same as the minimum wage?
A. Not exactly. The federal minimum wage is set by an act of Congress; state minimum wage levels, which could well be higher than federal, are set by state legislatures. Living wage laws are passed by county and city governments and require that a living wage be paid to city employees and to employees of companies who do business with the city. Some proposals include all businesses in the area. Living wage levels are much higher than the minimum wage – in some cases more than $15 an hour.
Q. Am I required to get some kind of proof of citizenship when I hire a new employee? Is it necessary for all new employees or just those not born in the United States?
A. You must complete and verify an Employment Eligibility Verification (I-9) form for every new hire. The Immigration & Naturalization Service specifies what documents are acceptable as verification that the person is allowed to work in the U.S.
Current information on what documents are acceptable is available at www.ins.gov.
Q. What should I do – am I required to do – when an employee in the National Guard or military reserve is called to active duty?
A. The Uniformed Services Employment & Reemployment Rights Act (USERRA) of 1994 requires employers to protect the jobs and benefits of employees called to active military duty. Primary obligations include re-employment after release, continuation of health care and retirement benefits, retraining if necessary upon return, re-employment in the same or similar position with the same seniority, pay and seniority rights or alternative re-employment for persons not meeting current qualifications.
Recent legislation expanded Family & Medical Leave Act (FMLA) benefits for families of military personnel, including National Guard and reserve units, on active duty or in need of care for combat wounds. Family members can qualify for up to 12 weeks of FMLA leave and up to 26 weeks to care for a combat-wounded family member. The small business exemption still applies.
Details are available from the Department of Labor's Veterans Employment & Training Service at www.dol.gov/dol/vets.
Q. Do medical confidentiality rules affect how my company handles employee health insurance claims, workers’ comp records and sick leave records?
A. The purpose of medical privacy rules is to protect personal medical information from people who have no need to know about it. In the workplace, there are concerns that employers would use medical information in hiring, promoting and termination decisions. Doing so could violate anti-discrimination laws.
Although the rules were written with health care providers and insurers in mind, they also apply to employers. Any company or organization that maintains medical records is obligated to have a privacy policy, train employees how to handle medical records and protect access to medical records. Patients must receive a notice of privacy practices and give written confirmation that they have received it.
If employers have reason to maintain medical records – such as handling workers’ comp claims or other insurance claims that employees need help with – they should limit the number of people who have access to medical information, keep medical records separate from other employment records and keep them in a secure, locked place.
Be aware that terminated employees could claim misuse of medical information in a complaint charging wrongful termination or employment discrimination.
More information at www.hhs.gov/oct/hipaa (Department of Health & Human Services) and www.cdc.gov/mmwr (Centers for Disease Control & Prevention).
If you have specific questions or concerns, consult an attorney or other professional.
Q. I heard that hardware stores are exempt from OSHA’s recordkeeping rules. Is that true?
A. OSHA exempts certain industries, defined by SIC (Standard Industrial Classification) codes, based on workplace illness and injury rates. Hardware stores are in the 525 SIC code, which is a partially-exempt code. They are not required to keep OSHA injury and illness records unless asked in writing to do so by OSHA, the Bureau of Labor Statistics (BLS) or a state agency operating under the authority of OSHA or BLS. Building supply stores are in the 521 SIC code and are not exempt.
There is also a small business exemption for companies with 10 or fewer employees. All employers must report workplace injuries or illnesses that result in fatalities or hospitalization of three or more employees.
Twenty-one states have OSHA-approved state programs for private-sector employers; their rules may differ slightly from federal rules. The remaining 29 states are covered by federal OSHA rules.
If you are required to keep records, you should use forms 300, 301 and 300A.
Information is available at www.osha.gov/recordkeeping .
Q. I received a notice that I’m in violation of several laws if I don’t have posters in my store. What should I do about this?
A. First, take a good look at the document. Did it come from a government agency or did it come from a company that sells posters and other compliance materials? If it came from a government agency, you may need to contact the agency directly or seek professional legal help. If it came from a private company, review it as you would any other promotional material that comes across your desk.
There are many government rules and regulations that employers must deal with but very few of them have posting requirements. There are six posters that the federal government requires employers to keep posted at all times. They involve employee rights for equal employment opportunity, rights of military reservists called to active duty, polygraph protection, fair labor practices, family and medical leave and a safe and healthy workplace.
These posters are available as a combined poster to NRHA members from the association.
Q. Is criminal prosecution my only option when a shoplifter steals from my store? Is there any way to get back what I lost?
A. Many states have civil recovery laws which allow retailers to recoup losses through civil lawsuits. There may be limits on how much you can recover. Usually you can prosecute under criminal laws, too. You need to check with local law enforcement agencies, prosecutor’s offices or state attorneys general for what is permitted in your state.