What is the Fair Labor Standards Act (FLSA)?
Definition
The Fair Labor Standards Act (FLSA) is a U.S. federal law that establishes minimum wage, overtime pay, recordkeeping, and child labor standards for workers in both the private and public sectors.
For example, the FLSA requires that most nonexempt employees receive overtime pay at 1.5x their regular rate for any hours worked over 40 in a workweek.
Why the FLSA matters
The FLSA protects employees and ensures baseline labor standards across industries. It:
Guarantees a minimum wage (currently $7.25/hr federally)
Regulates overtime pay and work hours
Prohibits exploitative child labor practices
Requires accurate payroll records for covered employees
Defines the rules for exempt vs. nonexempt classification
See the full law on the U.S. Department of Labor website.
How the FLSA works
Key provisions of the FLSA include:
Topic | Requirement |
Minimum wage | $7.25/hr federally (states may set higher rates) |
Overtime pay | 1.5x regular rate for hours worked over 40/week (for nonexempt) |
Exempt status | Based on job duties and salary level |
Youth labor | Limits hours and jobs for workers under 18 |
Recordkeeping | Employers must track hours, wages, and classifications |
Employers who violate the FLSA may owe back wages, penalties, and damages.
Example
A nonexempt warehouse employee earning $18/hr works 48 hours in a week. Under FLSA rules, they must be paid 8 hours at 1.5x their rate ($27/hr), resulting in $216 of overtime pay.
FAQs
Does the FLSA apply to all employers?
It applies to most businesses with annual sales of $500,000+ or engaged in interstate commerce — which covers the vast majority of U.S. employers.
Can states override FLSA rules?
Yes. tates can implement stricter labor laws, but not weaker ones.
What’s the penalty for violating FLSA?
Employers may owe back pay, liquidated damages, and civil penalties up to $1,000 per violation.
Does the FLSA cover independent contractors?
No, it only applies to employees, not independent contractors (which is why proper classification is crucial).
How is overtime calculated under the FLSA?
Time and a half applies to hours worked over 40 in a week — not per day — unless stricter state laws apply.
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