What is the FLSA (Fair Labor Standards Act)?
The Fair Labor Standards Act (FLSA) is a U.S. federal law enacted in 1938 that establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in federal, state, and local governments. The FLSA is administered by the Wage and Hour Division of the U.S. Department of Labor and plays a crucial role in protecting workers’ rights and ensuring fair compensation.
Key Provisions of the FLSA
Minimum Wage
The FLSA sets the federal minimum wage, which is the lowest hourly rate that employers can legally pay their employees. While the federal minimum wage provides a baseline, states and localities may set higher minimum wages.
Overtime Pay
Under the FLSA, non-exempt employees must receive overtime pay at a rate of one and a half times their regular rate of pay for all hours worked over 40 in a workweek. This provision ensures that employees are fairly compensated for extended work hours.
Child Labor Regulations
The FLSA includes provisions designed to protect the educational opportunities of minors and prohibit their employment in jobs that are detrimental to their health or well-being. It sets age restrictions and limits the hours and types of work that minors can perform.
Recordkeeping Requirements
Employers are required to maintain accurate records of employees’ wages, hours worked, and other conditions of employment. These records must be kept for a specified period and be available for inspection by the Department of Labor.
Exempt vs. Non-Exempt Employees
The FLSA distinguishes between exempt and non-exempt employees. Exempt employees are not entitled to overtime pay and typically include executive, administrative, professional, and certain other categories of workers who meet specific criteria.
Impact on Employers and Employees
Employers must comply with FLSA regulations to avoid penalties and legal disputes. Compliance involves ensuring that employees are classified correctly as exempt or non-exempt, maintaining accurate payroll records, and adhering to minimum wage and overtime requirements. For employees, the FLSA provides essential protections and guarantees fair compensation for their work.
