2.3 Labor & Employment Law (FLSA, immigration/I-9, EEO)
Key Takeaways
- FLSA overtime is 1.5x the regular rate for hours over 40 in a workweek—not over 8 in a day; only excess hours earn the premium.
- Davis-Bacon prevailing wages and stricter state daily-overtime rules can override the federal FLSA floor on covered work.
- Form I-9 Section 1 is due the first day of work and Section 2 within 3 business days; keep it 3 years after hire or 1 year after termination.
- Employers may not demand specific I-9 documents; doing so can be discriminatory, and knowingly hiring unauthorized workers carries penalties.
- Title VII and ADA apply at 15+ employees, ADEA at 20+, and FMLA grants 12 weeks unpaid leave at 50+ employees.
Labor and Employment Law
The exam covers three federal frameworks every commercial builder must obey: the Fair Labor Standards Act (FLSA) for wages and overtime, the Immigration Reform and Control Act (IRCA) for the Form I-9 employment-eligibility process, and Equal Employment Opportunity (EEO) anti-discrimination law. These are administered, respectively, by the Department of Labor (DOL), the U.S. Citizenship and Immigration Services (USCIS)/Department of Homeland Security, and the Equal Employment Opportunity Commission (EEOC).
Fair Labor Standards Act (FLSA)
FLSA sets the federal minimum wage and requires overtime at 1.5× the regular rate for hours over 40 in a workweek for non-exempt employees. Note: it is the workweek (40 hours), not 8 hours in a day, that triggers federal overtime—some states add daily overtime, and the stricter rule governs.
Child-labor provisions limit hazardous construction work to age 18+. On many public projects the Davis-Bacon Act layers in prevailing wages that can exceed the FLSA minimum.
A Worked Overtime Calculation
A laborer earning $20.00/hour works 46 hours in one workweek:
- Straight time: 40 × $20.00 = $800.00
- Overtime premium rate: $20.00 × 1.5 = $30.00/hour
- Overtime pay: 6 × $30.00 = $180.00
- Gross for the week: $980.00
Trap: do not pay all 46 hours at $30; only the 6 hours over 40 earn the premium. Also, non-discretionary bonuses must be folded into the regular rate before computing overtime.
Immigration and the Form I-9
IRCA requires every employer to verify identity and work authorization on Form I-9 for each new hire. Key deadlines:
- The employee completes Section 1 by the first day of work.
- The employer completes Section 2 within 3 business days of the start date by examining acceptable documents (List A, or one each from List B and List C).
Retain the I-9 for 3 years after hire or 1 year after termination, whichever is later. E-Verify is an electronic confirmation system, mandatory for many federal contractors. Knowingly hiring unauthorized workers brings civil and criminal penalties; demanding specific documents can itself be discriminatory.
Equal Employment Opportunity (EEO)
Federal EEO laws prohibit discrimination based on protected classes:
| Law | Protects against | Employer size |
|---|---|---|
| Title VII (Civil Rights Act) | Race, color, religion, sex, national origin | 15+ employees |
| Americans with Disabilities Act (ADA) | Disability; requires reasonable accommodation | 15+ |
| Age Discrimination in Employment Act (ADEA) | Age 40 and older | 20+ |
The Family and Medical Leave Act (FMLA) grants up to 12 weeks of unpaid, job-protected leave at employers with 50+ employees. Sexual harassment is a Title VII violation, and retaliation against a complainant is independently illegal.
An hourly worker paid $20/hour works 46 hours in a single workweek under the FLSA. What is the correct gross pay?
Under IRCA, by when must the employer complete Section 2 of a new hire's Form I-9?
FLSA Wage and Hour Rules
The Fair Labor Standards Act (FLSA) sets the federal minimum wage and overtime rules. Non-exempt workers earn 1.5× the regular rate for hours over 40 in a workweek — the trigger is hours worked in a week, not over 8 in a day (that daily rule is state-specific, e.g., California). The FLSA also restricts child labor: workers under 18 generally may not operate dangerous power equipment on a construction site. Davis-Bacon prevailing wages apply to federal public works over $2,000.
Worked Overtime Example
Example: A laborer earns $20/hour and works 46 hours in one week. Regular pay = 40 × $20 = $800. Overtime = 6 × ($20 × 1.5) = 6 × $30 = $180. Total gross = $980. Note overtime is on hours over 40 that week; working 9 hours one day and 7 the next does not by itself create federal overtime.
Immigration (I-9), EEO, and the ADA
Every new hire must complete Form I-9 to verify work authorization within three business days; E-Verify may be required on federal contracts. EEO law (Title VII) bars discrimination based on race, color, religion, sex, or national origin for employers with 15+ employees; the ADA (15+ employees) requires reasonable accommodation; the ADEA protects workers 40+ at employers with 20+. OSHA posting and workers' compensation coverage round out the compliance set.
Common Exam Traps
- Trap: Overtime starts after 8 hours in a day federally. No — the FLSA trigger is 40 hours per week.
- Trap: I-9 must be filed with the government on hire. It is retained by the employer, not filed, unless E-Verify applies.
- Trap: Title VII applies to every employer. It applies at 15+ employees.
- Trap: Paying salary makes a worker exempt from overtime. Exemption depends on duties + salary level, not the pay form alone.
A non-exempt worker paid $24/hour works 44 hours in one workweek. What is the gross pay?
Document Retention and Posting Requirements
The employer must retain the completed I-9 for the longer of three years after hire or one year after termination, and produce it on request — it is never mailed in. FLSA payroll records are kept three years. Employers must display required federal posters (FLSA minimum wage, OSHA "It's the Law," EEO, FMLA where applicable) at the jobsite or office. FMLA (50+ employees) provides up to 12 weeks of unpaid, job-protected leave. Knowing the employee-count thresholds — 15 (Title VII/ADA), 20 (ADEA), 50 (FMLA) — is a frequent exam target.