The Fair Labor Standards Act sets federal baseline rules for pay, hours, recordkeeping, and child labor. It applies across private and public sectors when work affects interstate commerce. Employers must follow these minimums even if state laws set higher standards.
What does the Fair Labor Standards Act require employers to do?
Pay at least the federal minimum wage to covered employees.
Pay overtime for nonexempt work over 40 hours in a workweek at one and one half times regular pay.
Keep payroll and time records that show hours worked, wages paid, and deductions.
Follow child labor limits and hazardous occupation rules for minors.
Which employees are covered under the Fair Labor Standards Act?
Coverage happens two ways: enterprise coverage (business meets revenue or interstate activity tests) and individual coverage (worker’s duties affect interstate commerce).
Some workers are excluded or partially exempt by statute or regulation; classification depends on duties and pay, not just job title.
How does the Fair Labor Standards Act determine overtime pay?
Overtime pay applies after 40 hours in a single workweek for nonexempt employees. Employers calculate the regular rate and then time and a half for overtime hours.
Some pay rules adjust overtime calculation when shift premiums, piece rates, or bonuses are part of pay. Follow DOL guidance for proper math.
What is the difference between exempt and nonexempt employees under the Fair Labor Standards Act?
Nonexempt employees: eligible for overtime and protected by minimum wage rules. Employers must track hours.
Exempt employees: not entitled to overtime when they meet specific tests tied to pay and duties (executive, administrative, professional, outside sales, and certain highly compensated roles). Tests include salary basis, salary level, and primary duties. Title alone does not determine status.
How does the Fair Labor Standards Act affect minimum wage and child labor laws in the workplace?
Federal minimum wage sets a national baseline; many states and cities set higher minimums that employers must follow.
Child labor rules limit hours and jobs for workers under 18 and ban hazardous occupations for minors. Exceptions exist for certain jobs and schooling arrangements.
Key Takeaways
summary | |
Core purpose | Sets federal rules for minimum wage, overtime, recordkeeping, and child labor. |
Overtime trigger | Overtime generally starts after 40 hours in a workweek for nonexempt workers. |
Exempt vs nonexempt | Determined by duties and pay tests, not job title alone. |
Recordkeeping | Employers must keep accurate payroll and time records. |
Child labor | Specific age limits and hazardous job bans protect minors. |
Frequently Asked Questions
What if state law and the Fair Labor Standards Act conflict?
Follow the law that gives the worker greater protection. Most often state laws that raise the minimum wage or broaden overtime rules supersede the federal baseline.
Can job title alone make someone exempt from overtime?
No. Exemption depends on actual duties and pay tests; job title is not sufficient.
Are tipped employees treated differently under the Fair Labor Standards Act?
Yes. Tips can count toward the minimum wage under certain rules, and employers may use a tip credit where allowed. Check DOL guidance for specifics.
How long must employers keep FLSA payroll records?
Typically at least three years for payroll records and two years for time sheets, but check DOL guidance and state rules for exact retention periods.
Where can employers get official guidance on compliance?
The U.S. Department of Labor Wage and Hour Division offers guides, fact sheets, and compliance help online.
