The Fair Labor Standards Act (FLSA) plays a critical role by specifying when different workers are on the clock and specific times not paid hours. FLSA also focused on specific rules relating to whether employees are non-exempt or exempt from overtime regulations related to FLSA (Harris, 2000). One group of employees that should be exempted from FLSA and do not qualify for overtime payment or minimum wage per hour is mainly executives. Logically, executives earn a minimum pay of about $684 weekly. This case means that their minimum wage per hour is about $17.1, while they must work for a minimum of forty hours per week. Although executives are not paid hourly, the salary they have and earn when calculated hourly is more than salaries earned by most employees under the FLSA program. Based on this difference in pay, it is evident that executives should be exempted from FLSA. Besides, they should also not qualify for overtime pay.
In most cases, most executives are also provided with bonuses, either each month or annually. But for most employees covered by FLSA are not legally entitled to receiving such bonuses, unlike these executives. Based on this, it can be decided that bonuses provided for these executives can also be considered compensation for their overtime. This case means that they should not qualify for overtime pay, thus resulting in executives being excluded from FLSA coverage. Logically, including these executives under the FLSA coverage could be considered a financial burden (Griffith, 2018). The main reason, in this case, is because their inclusion is more likely to result in an undue financial burden on those involved, thus affecting the general performance and impact of FLSA.
References
Griffith, K. L. (2018). The Fair Labor Standards Act at 80: Everything Old Is New Again. Cornell L. Rev., 104, 557.
Harris, S. D. (2000). Conceptions of Fairness and the Fair Labor Standards Act. Hofstra Lab. & Emp. LJ, 18, 19.
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