• Federal and state government set labor standards.Worker image by Catabu from Fotolia.com
  
  The U.S. Department of Labor administers the federal workers' labor laws. But some states have their own labor laws, which may agree or differ with federal law. The DOL notes that when the latter occurs, the employer must use the law most beneficial to the employee, such as the higher minimum wage rate.
  
  

Wages

• The Fair Labor Standards Act (FLSA) requires employers to pay workers not exempt from the minimum wage law at no less than the federal minimum wage--$7.25 an hour as of July 24, 2009. The law contains provisions for those under 20. Employers can pay them a reduced rate of $4.25 an hour during their first 90 days of employment. The employer cannot displace another employee simply because it wants to pay an employee this reduced rate.
  
  The employer can pay on a piece-rate (per unit) basis, provided employees receive no less than the equivalent of the minimum wage rate. The employer must pay overtime to qualified employees who work more than 40 hours in the workweek. This accounts for most hourly workers.
  
  The employer must pay salaried workers their full salary, even if they do not work a full week. But, if no work is performed during the workweek, the salaried employee doesn't get paid for that week. Salaried-exempt employees are exempt from overtime protection laws and do not qualify for overtime pay.
  
  

Contract Labor

• The DOL's Wage and Hour Division regulates the Contract Work Hours and Safety Standards Act (CWHSSA). The CWHSSA covers contractors and subcontractors under federally funded and federally assisted contracts and those with federal service contracts exceeding $100,000. The contractors and subcontractors must compensate workers and mechanics operating within the contract overtime for hours worked above 40 in the workweek. The DOL notes that the CWHSSA does not apply to certain contracts, such as land, air or water transportation; intelligence transmission; or "open market" purchase of supplies, materials or articles.
  
  

Work Authorization

• The Immigration and Nationality Act (INA) establishes provisions for employment eligibility, nondiscrimination and employment verification. The law rules that employers must ensure employees are legally authorized to work in the United States before hiring them. This includes using Form I-9, Employment Eligibility Verification Form, to determine eligibility and perform verification. The law guards those legally authorized to work in the United States from hiring or termination due to citizenship status or origin.
  
  

Record-Keeping

• The FLSA regulates record-keeping requirements, which varies by labor law. In general, employers must keep payroll records for a minimum of three years; records that determine wage computation must be kept for at least two years. Record-keeping for immigration vary by alien classification or foreign employee being hired.
  
  For example, an employer under the H-2A temporary agricultural program must retain the hours each worker works. Furthermore, it must record all labor offered to the employee and those the worker refused to perform. Each worker must be given a wage statement, detailing work hours; hours refused; each crop payment; and pay basis, such as hourly or piece-rate.