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Out-of-date law prevents employers from providing nonexempt employees popular flexible benefits
WASHINGTON, D.C. – July 14, 2011 – The 73-year-old Fair Labor Standards Act needs to be modernized to allow employers greater flexibility to meet the demands of the current workforce, the Society for Human Resource Management (SHRM) told the U.S. House Education and the Workforce Subcommittee on Workforce Protections today.
The Fair Labor Standards Act (FLSA) "reflects the realities of the industrial workplace of the1930s and not the workplace of the 21st century," said Nobumichi Hara, a human resource executive and SHRM member. "Minimum-wage policies and overtime exemption requirements, which may have been appropriate in the 1930s, are out of step with the current knowledge- and technology-based economy, creating unnecessary regulatory burdens for employers and restricting employers’ ability to be flexible and address contemporary employee needs."
Speaking on behalf of SHRM, the world’s largest HR association, Hara told members of the subcommittee that the FLSA does not permit employers to provide the workplace flexibility benefits — flextime, telecommuting and compressed workweeks, for example — that millions of nonexempt employees (or hourly workers) want.
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