A guide to overtime pay for student learners
Most employers are covered by the Fair Labor Standards Act (FLSA), meaning they are required to pay employees minimum wage for all of their hours worked and overtime rates (time-and-a-half the standard rate) if they work more than 40 hours in a given pay period. However, there are certain exceptions to coverage, such as full-time students and student learners.
Employers may not need to pay these workers federal minimum wage if they have the proper documentation on file. For example, during the first 90 consecutive calendar days of employment, workers under the age of 20 can be paid $4.25, which is a special youth minimum wage rate set by the Department of Labor.
Additionally, employers that hire students participating in vocational education programs, also known as student-learners, can pay them 75 percent of federal minimum wage if they obtain a certificate from the Wage and Hour Division. If other businesses in the retail, service, higher education or agricultural sector employ full-time students, they can pay 85 percent of the federal minimum wage with the same documentation.
Employers who hire student workers with the intention of paying them at these lower rates should ensure they have the necessary paperwork on file should they come under question by the Department of Labor. In some instances, outsourcing human resources is the most practical solution for companies to stay in compliance with the FLSA.
Employers may not need to pay these workers federal minimum wage if they have the proper documentation on file. For example, during the first 90 consecutive calendar days of employment, workers under the age of 20 can be paid $4.25, which is a special youth minimum wage rate set by the Department of Labor.
Additionally, employers that hire students participating in vocational education programs, also known as student-learners, can pay them 75 percent of federal minimum wage if they obtain a certificate from the Wage and Hour Division. If other businesses in the retail, service, higher education or agricultural sector employ full-time students, they can pay 85 percent of the federal minimum wage with the same documentation.
Employers who hire student workers with the intention of paying them at these lower rates should ensure they have the necessary paperwork on file should they come under question by the Department of Labor. In some instances, outsourcing human resources is the most practical solution for companies to stay in compliance with the FLSA.
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