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Wages, Hours, and BenefitsThe government’s interest in regulating employment extends to theconditions under which employees perform their jobs. In the 1930s, thegovernment responded to many of the hardships suffered by workersduring the Great Depression by regulating wages, hours, and benefitsof workers by passing several laws that set standards for employment inAmerican businesses.Fair Labor Standards ActThe federal Fair Labor Standards Act, also known as the Wage andHour Law, requires certain employers to pay their workers a legal minimumhourly wage rate, plus time-and-a-half for all work over 40 hoursper week. The Fair Labor Standards Act also regulates the employmentof minors. The act covers employees who produce goods for transportin interstate commerce and workers such as certain hospital, retail,restaurant, and school employees. Professional employees, administrators,and executives are not covered by this act.Equal Pay ActIn 1963, Congress passed the Equal Pay Act as an amendment tothe Fair Labor Standards Act. The amendment established the equal payrule, which states that employers engaged in interstate commerce mustpay women the same rate of pay as men holding the same type of job.The equal pay rule covers hourly workers, executives, administrators,professional employees, and outside salespeople who receive salariesand/or commission.Employment Retirement Income Security ActA pension plan is a program established by an employer or a unionthat is designed to provide income to employees after they retire. A pension’samount is typically based on an employee’s salary and length ofservice with a company. Previously, funds in some employee pensionplans were poorly invested, or the funds deposited in retirement accountswere used for other business expenses. These practices resulted in lossesof retirement benefits to workers and severe economic hardship to themand their families.The Employment Retirement Income Security Act (ERISA) waspassed to prevent such abuse. One requirement of the act is thatemployers must place employee contributions to pension plans in a trustfund that is independent of the employer’s control. Another ERISArequirement imposes a duty of good faith on those who manage pensionplans. Other ERISA requirements include informing employees of theirretirement benefits and submitting reports on the plan to the Secretaryof Labor.456 Unit 4: Being an Agent and Getting a Job