Anaya Nolan
The Fair Labor Standards Act (FLSA) is a federal statute that establishes minimum wage, overtime pay, record-keeping, and youth employment standards. It applies to both part-time and full-time employees in the private sector and federal, state, and local governments. The FLSA also prohibits oppressive child labor and protects workers against unfair employment practices. While the FLSA sets a federal minimum wage, state laws can govern labor regulations and set a higher minimum wage. For example, if a state's minimum wage exceeds the federal minimum, an employee is entitled to the state's minimum wage. Local laws can supplement the FLSA, and in some cases, provide greater protections for workers.
| Characteristics | Values |
|---|---|
| Date enacted | June 25, 1938 |
| Date effective | October 24, 1938 |
| Enacted by | 75th Congress |
| Signed into law by | President Franklin D. Roosevelt |
| Minimum wage | $7.25 per hour |
| Overtime pay | 1.5 times regular pay rate for workweeks exceeding 40 hours |
| Child labor | Prohibits employment of minors in "oppressive child labor"; sets minimum age for most non-agricultural work at 14 |
| Application | Applies to employees in any U.S. state, territory, or possession, plus the District of Columbia |
| Amendments | Numerous, including the 1949, 1961, 1966, and 1974 amendments |
| Local laws | Each state has its own labor laws, which may provide greater protections than the FLSA; local laws can set higher minimum wages |
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Minimum wage
The Fair Labor Standards Act (FLSA) is a federal statute that establishes the right to a minimum wage, overtime pay, and protections for minors in the United States. It was enacted in 1938 and has been amended several times to include a range of worker protections. While the FLSA sets a federal minimum wage, state laws can also govern minimum wage rates, and employees are entitled to the more generous of the two. Cities and counties may also implement their own labor regulations, which often provide a higher minimum wage than the federal minimum.
The FLSA was signed into law by President Franklin D. Roosevelt on June 25, 1938, and it established the first federal minimum wage of 25 cents per hour. The act also banned all labor for children under 14 and hazardous labor for those between 14 and 18 years old. The minimum wage under the FLSA has been raised several times since its inception, with President Truman urging Congress to increase it from 40 cents to 65 cents per hour in 1949. The Fair Minimum Wage Act of 2007 further amended the FLSA, raising the federal minimum wage incrementally to $7.25 per hour by July 24, 2009.
While the FLSA sets a federal minimum wage, individual states have the authority to implement their own minimum wage laws. In many cases, state minimum wage laws offer greater protections than the FLSA. For example, if a state's minimum wage is higher than the federal minimum, employees covered by the FLSA are entitled to the state's minimum wage. Similarly, if a state's overtime pay rate is higher than the FLSA's "time-and-a-half" standard, employees are entitled to the state's overtime rate.
In addition to state laws, some cities and counties have enacted their own labor regulations, which can include a minimum wage that is higher than the federal or state minimum. These local laws supplement the FLSA and provide additional protections for workers. It is important for employers, especially those operating in multiple states or locations, to be aware of and comply with the various local wage and hour rules in addition to the FLSA.
The FLSA's minimum wage provisions apply to both part-time and full-time employees, while the sections on overtime pay primarily affect full-time employees. The act defines "overtime" as working more than 40 hours per week and requires employers to pay time-and-a-half for hours worked beyond this threshold. The FLSA also includes exemptions from minimum wage and overtime pay requirements for certain employees, such as executive, administrative, and professional workers.
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Overtime pay
The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, record-keeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments. The FLSA's overtime provisions require that employees covered by the Act must receive overtime pay for hours worked over 40 in a workweek at a rate not less than time and one-half their regular rates of pay. This means that for every hour worked over 40 hours in a given week, employees must be compensated for one and a half times their regular hourly rate. It is important to note that the FLSA does not impose a limit on the number of hours employees aged 16 and older can work in any given workweek.
The FLSA also does not require overtime pay for work on weekends or holidays unless overtime is worked on those days. An employee's workweek is defined as a fixed and regularly recurring period of 168 hours or seven consecutive 24-hour periods. This workweek need not coincide with the calendar week and can begin on any day and at any hour. Additionally, different workweeks may be established for different employees or groups of employees within an organization.
While the FLSA sets the federal standards for overtime pay, it is worth noting that some states have their own rules and laws governing overtime exemptions. In general, if state law provides greater protection to employees, such as requiring a higher salary amount for overtime exemption or having more stringent duties tests, then state law takes precedence. As of November 2024, six states (Alaska, California, Colorado, Maine, New York, and Washington) had minimum salary requirements for overtime exemption that exceeded the federal threshold. These states also plan to further increase their minimum salary requirements in 2025.
The FLSA provides exemptions from overtime requirements for certain employees in administrative, professional, executive, highly compensated, outside sales, and computer professional roles. These employees are referred to as "'exempt' employees." To qualify as exempt, these employees must generally satisfy three tests: the salary-level test, the salary-basis test, and the duties test. For example, to meet the salary-level test, employers must pay employees a salary of at least a specified amount per week to qualify for the executive, administrative, and professional employee exemptions.
The Department of Labor (DOL) has issued guidance and rules to help clarify the application of the FLSA, including the Overtime Security Advisor, which helps determine which employees are exempt from the FLSA minimum wage and overtime pay requirements. However, it is important to note that on November 15, 2024, a Texas federal court struck down a DOL final rule that would have raised the minimum salary threshold for overtime exemption. As a result, the federal minimum salary required for the executive, administrative, and professional exemptions from overtime remains at $684 per week.
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Record-keeping
The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, record-keeping, and youth employment standards governing the employer-employee relationship. Employers must display an official poster outlining the requirements of the FLSA and keep employee time and pay records.
The FLSA requires employers to keep records on wages, hours, and other items, as specified in DOL record-keeping regulations. Most of the information is of the kind generally maintained by employers in ordinary business practice and in compliance with other laws and regulations. The records do not have to be kept in any particular form, and time clocks need not be used. Employers may use any timekeeping method they choose. For example, they may use a time clock, have a timekeeper keep track of an employee's work hours, or tell their workers to write their own times on the records.
For employees subject to the minimum wage provisions or both the minimum wage and overtime pay provisions, the following records must be kept: personal information, including the employee's name, home address, occupation, sex, and birth date if under 19 years of age. Records required for exempt employees differ from those for nonexempt workers. Special information is required for homeworkers, employees working under uncommon pay arrangements, employees to whom lodging or other facilities are furnished, and employees receiving remedial education.
If you have any employees who customarily receive tips from customers, in addition to the information you would keep for nonexempt employees, you must keep the following: a symbol, letter, or notation placed on the pay records that identifies each tipped employee, the weekly or monthly amount of tips reported by the employee, the amount by which the wages of each tipped employee have been increased by tips, and the hours worked each workday in any occupation where the employee does or does not receive tips, along with the total daily or weekly earnings for those times.
Federal law requires employers to retain wage and hour records for a specific length of time, and these records must be accessible for inspection. Employers shall preserve for at least three years payroll records, collective bargaining agreements, sales and purchase records, and records on which wage computations are based for two years. These records must be open for inspection by the Division's representatives, who may ask the employer to make extensions, computations, or transcriptions. The records may be kept at the place of employment or in a central records office.
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Youth employment
The Fair Labor Standards Act (FLSA) is a federal US law that protects workers against unfair pay practices. It establishes minimum wage, overtime pay, record-keeping, and youth employment standards. The FLSA's minimum wage and record-keeping sections apply to both part-time and full-time employees, while the sections on overtime pay primarily affect full-time employees.
The FLSA also includes provisions on child labor, banning all labor for children under 14 and hazardous labor for those aged 14-18. The Act sets a minimum hourly wage and a maximum workweek of 44 hours, which was adjusted to 40 hours in October 1938.
In addition to the FLSA, there are other federal laws that apply to youth employment, such as the Family and Medical Leave Act and the Occupational Safety and Health Act. Each state also has its own labor laws covering areas like minimum wage, overtime pay, meal and rest breaks, and more. In many cases, state labor and minimum wage laws offer greater protections than the FLSA.
Local or municipal labor laws also exist, providing a higher minimum wage than federally mandated. For example, the Wage and Hour Division (WHD) enforces the Davis-Bacon and Related Acts, which require the payment of prevailing wage rates and fringe benefits on federally-financed or assisted construction projects.
The US Department of Labor provides resources for youth employment, including information on career planning, training, and job opportunities. They also offer support for youth with disabilities transitioning into the workforce and provide labor market information.
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Local labour laws
The Fair Labor Standards Act (FLSA) is a federal statute in the United States that was enacted in 1938. It establishes minimum wage, overtime pay, record-keeping, and youth employment standards for employees in the private sector and in federal, state, and local governments. The FLSA also prohibits oppressive child labour and protects workers against unfair employment practices.
While the FLSA sets a federal minimum wage, each state has its own labour laws that may provide greater protections to workers. For example, if a state's minimum wage is higher than the federal minimum, employees are entitled to the state's minimum wage. Similarly, if a state's overtime pay rate is higher than the FLSA's time-and-a-half standard, employees are entitled to the state's rate.
In addition to state laws, some cities or counties have their own labour regulations, often setting a higher minimum wage than the federal minimum. These local laws can provide additional protections to workers, such as meal and rest breaks.
It is important for employers, especially those operating in multiple states and locations, to be aware of and comply with the various local wage and hour rules in addition to the FLSA. Non-compliance can result in costly fines, litigation, and reputational damage.
The FLSA has undergone numerous amendments since its enactment, with the most recent changes occurring in 2024. These amendments have included updates to minimum wage rates, overtime pay regulations, and exemptions for certain employees.
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Frequently asked questions
The Fair Labor Standards Act (FLSA) is a federal statute enacted by the United States' 75th Congress in 1938. It establishes minimum wage, overtime pay, record-keeping, and youth employment standards for employees in the private sector and in federal, state, and local governments.
Yes, local laws can supplement the FLSA. Each state has its own labor laws covering areas such as minimum wage, overtime pay, meal and rest breaks, and more. In many cases, state labor and minimum wage laws offer greater protections than the FLSA. For example, if a state's minimum wage is higher than the federal minimum wage, an employee is entitled to the state's minimum wage.
One example is the amendment that permitted state and local government employers to compensate their employees' overtime hours with paid time away from work instead of overtime pay. Another example is the Family and Medical Leave Act, which is a federal law that could also apply depending on the situation.
