Question

Explain FLSA and its purpose. Then choose and explain in detail two of the other listed labor laws below. Then, explain why labor laws are important to both the employee and the employer?

The other two labor are;

Federal Unemployment Tax Act (FUTA)

Affordable Care Act (ACA)

Answer 1

Fair Labor Standards Act (FLSA):

Fair Labor Standards Act (FLSA) is a labor law enacted by the United States of America during the year 1938.

The major objective of enacting FLSA is to provide protection to the employees from certain practices of the employer, which are unfair in nature.

  The FLSA contains minimum wage regulations, overtime (OT) payment regulations, and child labor regulations.

The act requires all the employment agencies whether they are private, local, state, or federal in nature to maintain certain records in the prescribed form.

Federal Unemployment Tax Act (FUTA):

Federal Unemployment Tax Act (FUTA) is the legislation that empowers the government to tax those organizations, which are having employees working at the instance to collect revenue.

The purpose of the revenue collection through the FUTA act is to use such sums by allocating them to various state unemployment agencies.

The state unemployment agencies further use the allocated sums to disburse the unemployment insurance proceeds to the eligible unemployed workers.

Those employers who are paying the unemployment tax to the agency are required to file IRS Form 940 while paying the tax, annually.

Affordable Care Act (ACA):

The Affordable Care Act (ACA) is enacted in the year 2010 while Barack Obama is the president of the USA. It is also known as Obamacare informally.

The ACA contains various provisions with an intention to provide a healthcare facility to uninsured citizens of the US.

The act has various sweeping reforms like facilitating health insurance exchanges, prevents insurance companies to deny insurance coverage for pre-existing conditions in some cases.

The ACA also allows the children to get covered under their parents' policy until they attain the age of 26 years.

Those families with low income qualify for extra savings on insurance plans for health through tax credits and reductions with cost-sharing.

Importance of labor laws:

Labor laws distinctly specifies the rights and responsibilities between the employees and their employers.

The major objective of various labor laws is to grant protection for various rights of the employees, to provide safe working conditions for workers, to prohibit child labor, to enhance the bargaining power of the employees with their employers.

The labor laws provide for minimum wage requirements so that employers will not underpay the vulnerable employees.

The labor laws provide appropriate protection to the employees and workers to get rid of various discriminatory practices of the employers.