What is the difference between a collective bargaining agreement and a wage and hour law?
Collective bargaining agreements (CBAs) and wage and hour laws are both tools used to govern the rights and obligations of employers and employees. Collectively bargained CBAs reflect the terms and conditions of employment as negotiated between unions and employers. These agreements are individually tailored to the specific needs and interests of the parties involved. Wage and hour laws, on the other hand, are state and federal regulations that establish minimum standards for wages, hours, pay practices, and benefits for all employees regardless of union status. These laws apply to all employers and their employees in the state, including those with union contracts. The main difference between collective bargaining agreements and wage and hour laws is that CBAs are negotiated contracts that supersede state and federal laws. CBAs are binding only on the parties that negotiated them, while wage and hour laws are binding on all employers in the state, even if they have a union contract. In Pennsylvania, the Minimum Wage Act and the Wage Payment and Collection Law are two examples of wage and hour laws that apply to all employers in the state regardless of whether they have collective bargaining agreements. These laws require employers to pay workers the state minimum wage, overtime pay after 40 hours of work in a week, timely wage payments, last paycheck terms, and other rights and protections for workers.
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