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CLIA MCC: Wage and Hour and Labor Law

CLIA MCC · Work through your exam, one topic at a time.

All guide sections

Wage and Hour and Labor Law

The Wage and hour and labor law domain tests the daily employment decisions that create liability: pay, overtime, tips, exemptions, scheduling, discrimination, harassment, retaliation, and recordkeeping. Most lodging jobs are covered by the Fair Labor Standards Act and state law; when the two differ, the rule more protective of the employee generally controls.

Minimum wage, overtime, and hours worked

Non-exempt employees must receive at least the minimum wage and 1.5 times their regular rate for hours over 40 in a workweek. The regular rate includes hourly pay, shift differentials, and nondiscretionary bonuses, but not most expense reimbursements. Hours worked include required pre-shift meetings, cleaning, training, and time the employer suffers or permits. Meal breaks must be at least 30 minutes and duty-free; a working meal is paid time.

Tips and exemptions

Under the FLSA, an employer may use a tip credit only if it pays the required cash wage, informs employees, and keeps proper records. Employees must retain their tips except through a valid tip pool that excludes managers and supervisors. Service charges are employer revenue, not tips. A salary alone does not make an employee exempt; the executive, administrative, or professional duties tests must also be met. A front-desk agent or housekeeper is normally non-exempt even if salaried.

Labor relations and records

Section 7 of the NLRA protects concerted activity about wages and working conditions, including for non-union staff. Keep I-9s, payroll records, and time records; FLSA payroll records are generally kept two years, with three years for certain certificates. Do not retaliate against complaints.

Worked example

A maintenance technician earns $18/hour and works 47 hours, plus a $40 nondiscretionary weekly bonus. Regular rate = ($18 × 47 + $40) ÷ 47 = $18.85. Overtime premium = 0.5 × $18.85 × 7 = $65.98. Total pay = $846 + $40 + $65.98 = $951.98. Paying 47 hours at $18 and ignoring the bonus understates overtime.

Traps

Treating salaried as exempt; editing punches; giving comp time instead of overtime in a private hotel; including supervisors in tip pools; and retaliating after a wage complaint.