Fair Labor Standards Act Key Provisions, also known as the FLSA Key Provisions, is a piece of important legislation that governs workers’ rights in America. It provides fair wages and safe working hours, while protecting them against exploitation. Both employees and employers should be familiar with the FLSA’s main provisions.
Fair Labor Standards Act (FLSA) regulations are important for employers to comply with in order to create a transparent and fair business environment.
The Fair Labor Standards Act (FLSA) is broken down into its key components. The FLSA is a complex law that has many rules. We will break it down for you and explain what employers and employees should know.
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Minimum Wage
1. Federal Minimum Wage (FLSA): Fair Labor Standards Act (FLSA), which sets the federal minimum wages, currently at $7.25 an hour.
2. The Youth Minimum Wage is $4.25 an hour. Employers can pay this wage to employees who are under 20 years old for their first 90 calendar days.
Overtime Payment
1. Overtime rate: Employees covered by the overtime policy must be paid at least 1,5 times their normal pay when they work more than 40 hours in a week.
2. Overtime Hours are any hours that exceed 40 per week.
Records
1. Keep accurate Records. Employers are required to keep detailed records on the wages and hours of their employees, as well as other information related to employment.
2. Records Retention: Employers are required to retain records for a minimum of 3 years.
Child Labour
1. Fair Labor Standards Act (FLSA) Age restrictions: FLSA sets out age limits for certain jobs and prohibits minors from working in them.
2. Work Permitted: Certain occupations such as agriculture, retail and food services are permissible for minors.
Exceptions
1. Executive Employees are exempted from Fair Labor Standards Act (FLSA) minimum wage provisions and overtime pay.
2. Administrative exemption: Employees in administrative positions are not subject to the FLSA minimum wage or overtime provisions.
3. Professional Employees are exempted from FLSA minimum wage provisions and overtime pay.
4. Computer Employee Exemption: The FLSA does not apply to employees who work in the computer industry.
Coverage
1. Fair Labor Standards Act (FLSA) Enterprise Coverage: This law applies to all employers with a gross annual sales volume or business exceeding $500,000.
2. Employees who work in commerce between states or produce goods to be sold in commerce across state lines are covered by the FLSA.
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1. Division of Wage and hour: This division of the U.S. Department of Labor enforces the FLSA.
2. If you violate FLSA, employers may have to pay employees backpay and liquidated damages.
The Fair Labor Standards Act (FLSA), Key Provisions
Fair Labor Standards Act (FLSA) governs the rights of workers and protects them in America. The FLSA was signed into law in 1938 by Franklin D. Roosevelt. It ensures that employees receive fair wages and work conditions across the nation. It’s essential to know the main provisions of the Fair Labor Standards Act, whether you are an employee who wants to learn about your rights or a company that is trying to comply.
The FLSA is broken down into its main provisions in this article. It will help you understand everything from overtime and minimum wages to child labor laws and exemptions. There are also real-world scenarios to help you understand the laws in action. We’ll dive in to what the FLSA all about, and why you should care.
What is Fair Labor Standards Act (FLSA)?
The Fair Labor Standards Act (FLSA) was passed in the United States to protect employees by setting minimum wages, overtime guidelines, and protections for child labor. FLSA requires that employers keep accurate records on employee wages and hours.
Workers are entitled to fair pay for the time they spend on their jobs. This law applies to the majority of workers in America, such as those who work in manufacturing, retail and healthcare industries.
Wage and Hour Division of the U.S. Department of Labor (DOL) enforces the FLSA. Department of Labor. The FLSA provides these protections to create an equitable workplace, ensuring that employees don’t get exploited, and are compensated appropriately for their hard work.
The Fair Labor Standards Act (FLSA), Key Provisions
1. Minimum Wage Requirements
Minimum Wage is one of the most significant provisions in the Fair Labor Standards Act (FLSA). This law establishes a minimum wage for employers to pay employees per hour.
- As of 2025, the federal wage minimum has been increased to $7.25 an hour.
- Many states, counties and cities, however, have set higher Minimum Wage Rates in order to reflect their local cost of living. In California, for example, minimum wages are 15 per hour in businesses that have 26 employees or more.
Anecdote:
Sarah is a retail worker in California. Due to California state law, even though the federal minimal wage was $7.25 per hour, Sarah’s employer is required to pay her 15 dollars an hour. Sarah will be paid according to the costs of living for her region.
The U.S. Department of Labor website is a great place to check the latest minimum wage rates. Department of Labor Website.
2. Overtime pay (Time-and-a-half)
Overtime pay is another important provision in the Fair Labor Standards Act. The law states that employees who exceed forty hours during a week can be entitled to overtime pay, usually equal to 1,5 times the regular hourly rate.
If an employee works 45 hours a week and earns 10 per hour, then they have the right to 15 per hour, for 5 hours of overtime. The goal is to make sure that workers receive a fair compensation for the extra hours they work.
Real-World Example:
John is a worker at a manufacturing plant. John usually works forty hours per week. However, during an especially busy time, he may work 50. John’s regular wage would be paid for his first 40 hours. For the 10 additional hours, John will earn 1,5 times of his regular rate. His regular rate of $12 an hour would translate to 18 dollars per hour.
The FLSA mandates that employers pay the overtime rates for employees who are not exempt. Exempt employees are not entitled to overtime compensation.
3. Employers who are exempt from taxation and those that are not
The FLSA distinguishes between employees who are exempt, and those that are not:
- Employees who are exempt usually have salaried positions in management, administration, or professions. They are entitled to no overtime, even though they may work over 40 hours per week.
- Employees who are not exempt have the right to receive overtime when they work over 40 hours per week.
Anecdote:
Imagine a manager named Laura at a retail store. Laura, a salaried worker who oversees the retail store, makes hiring and firing decisions. She is exempt, and therefore does not get overtime pay even though she may work more than 40 hours a week.
Sarah is a cashier and therefore not exempt. She would then be entitled to overtime pay, if she worked more than 40 hour a week.
The Fair Labor Standards Act specifies criteria to determine whether an employee’s salary and duties make them exempt from the FLSA. Learn more about the exempt employee criteria at U.S. Department of Labor website.
4. Child Labor Laws
The Fair Labor Standards Act (FLSA) contains specific Child Labor protections for minors. The laws set limits on the type of work and hours minors are allowed to do.
- Children aged 14 and 15 are permitted to work but in limited jobs.
- The 16 and 17 year olds are allowed to work in more jobs, but they still cannot do dangerous occupations.
A 14-year old can be a cashier but cannot work in construction, or operate dangerous machines. The restrictions aim to keep minors safe while still allowing them valuable experience.
Real-World Example:
Liam is 15 years old and works in a local ice-cream shop. He can work for up to three hours per school day and up to eight hours per daily in the summer. He is not permitted to work after 7:00 pm during the school term, as this would interfere with his studies.
5. Recordkeeping requirements
The employer must keep detailed records on employee work hours, wage payments, and any other important information. It is vital to ensure that employees are fairly paid and the employer adheres to the FLSA.
The employer must keep the following records on each employee.
- Name and full address
- Date of birth (if you are under the age of 19)
- Total wages and hourly rates
- The number of hours worked per day, each week
The U.S. Department of Labor can inspect these records for three years. Department of Labor.
6. Tipping Credits
The FLSA has provisions that apply to workers earning tips. This includes bartenders and restaurant servers. Employers can in certain circumstances pay their tipped workers a lower wage per hour (as little as $2.13), provided the tips they receive bring the total amount of the employees’ earnings to the minimum federal wage of 7.25 dollars per hour.
If a server earns 2.13 dollars per hour but also receives 50 dollars in tips, then their earnings will exceed the minimum wage.
What is FLSA and how it affects you as an employee
The FLSA provides important protections for employees, such as:
- Equal pay includes overtime pay.
- Protection against child labor exploitation.
- Right to safe work conditions
You can complain to the U.S. Department of Labor if you feel that your FLSA rights have been violated, such as when overtime is not paid or when employees are forced to work under unsafe conditions. Department of Labor. Knowing your rights is important so that you are prepared to take appropriate action.
The Fair Labor Standards Act (FLSA) and Employers
Understanding and adhering to the Fair Labor Standards Act (FLSA) will help employers avoid expensive fines and legal problems. Employers should follow these steps:
- It is important to classify employees as exempt, or not-exempt.
- Minimum wage for employees.
- Keep accurate records for the hours worked, and the wages received.
- Payment of overtime for non-exempt workers
- Child labor laws.
FAQs regarding the Fair Labor Standards Act
1. What is the minimum federal wage in the FLSA?
The federal minimum is 7.25 dollars per hour. However, many localities and states have higher rates. If there are higher wage rates in a state or locality, employers must pay them.
2. Who can claim overtime under FLSA?
The overtime rate for employees who are classified as Non-Exempt, and work over forty hours per week is 1,5 times the regular salary.
3. How does the FLSA regulate child labor?
FLSA limits the hours and types of work that minors are allowed to do. For 14 and 15 year olds, they can only work non-hazardous positions with limited hours. for 16 and 17 year olds are allowed to work more hours.
4. Are salaried workers eligible for overtime pay?
Salary employees can be excluded overtime pay depending upon their position and level of salary. Employees classified as Non-Exempt are eligible for overtime pay, whether or not they are paid.
The Fair Labor Standards Act protects workers’ rights in the U.S. by ensuring fair wage and overtime pay. It also provides employers with clear guidelines. Knowing the provisions is important for both employers and workers.
Visit Tax Laws In USA for more information about Fair Labor Standards Act (FLSA).
