FLSA

The Fair Labor Standards Act (FLSA) is a United States federal law enacted in 1938 as part of the New Deal. Its primary purposes are to establish minimum wage, overtime pay, recordkeeping, and child labor standards for workers in the United States. The act is administered and enforced by the Wage and Hour Division of the U.S. Department of Labor.

Minimum wage and overtime: The FLSA requires most employees to be paid at least the federal minimum wage for all hours worked and to receive overtime pay, at a rate of not less than one and one-half times their regular rate of pay, for hours worked over 40 in a workweek. States may set higher standards, and meeting or surpassing those standards is common.

Exemptions: Some employees are exempt from minimum wage and/or overtime requirements if they meet specific tests related to duties and are paid on a salary basis at or above a set threshold. Common exempt categories include executive, administrative, professional, certain computer-related roles, outside sales, and some highly compensated employees. Exemption status depends on both duties and compensation.

Child labor: The FLSA imposes age limits and work restrictions on minors, with more stringent rules for younger workers and for hazardous occupations.

Recordkeeping and enforcement: Employers must maintain records of hours worked and wages paid. The Department of Labor enforces the act through investigations and can seek back wages, penalties, and other remedies. Employees may also pursue private litigation to recover unpaid wages in certain circumstances.

Scope: The act applies to most private-sector employers and many public-sector employers, but some employees and industries are exempt. It provides a federal wage and hour baseline, while states may enact more protective standards.