Laws for Contingent Jobs
- As with regular full-time employees, businesses that hire people for contingent jobs are obligated to honor the details of the Fair Labor Standards Act (FLSA). These companies must also be in compliance with the Occupational Safety and Health Act (OSHA), which ensures that a healthy and safe working environment is provided to employees of the company.
- For most contingent workers, those 18 years of age or older, an unlimited number of hours can be worked in any type of contingent job. Minors who are 16 and 17 years old are also permitted to work unlimited hours but are not allowed to perform hazardous jobs. Children aged 14 and 15 cannot work more than three hours during a school day, eight hours during a non-school day, 18 hours during a regular school week or more than 40 hours during a week with no school attendance. They are also not permitted to work before 7 a.m. or after 7 p.m. Children under the age of 14 are not eligible for most jobs but may still deliver newspapers and work in performance-based situations.
- The lowest salary that can be paid for contingent jobs is the federal minimum wage, which as of July 24th, 2009, is $7.25 per hour. Each state may have its own minimum wage, but it must not fall below the federal rate. This applies to the first 40 hours of work per week. All hours in excess of 40 per week must be paid as overtime, at least 1.5 times the regular pay rate. These wages must be paid on regularly scheduled paydays for each pay period. A businesses cannot deduct from these wages to cover contingent worker uniforms or losses from merchandise or cash shortages.
- Unlike regular full-time employees, contingent workers often receive none of their same benefits, such as company-provided contributions to income tax, Social Security and Medicare tax and pension plans. The cost of all of these obligations may be entirely the responsibility of the contingent worker. Those considered self-employed will have to pay the self-employment tax. Contingent workers also may not receive paid time off for vacations, holidays and sick leave.
FLSA and OSHA
Work Hours and Job Types
Wages
Laws Not Applying to Contingent Jobs
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