Glossary term
Fair Labor Standards Act (FLSA)
The Fair Labor Standards Act is the federal wage and hour law covering minimum wage, overtime, child labor, and related employment standards.
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What Is the Fair Labor Standards Act (FLSA)?
The Fair Labor Standards Act, or FLSA, is the main federal wage and hour law in the United States. It sets rules for minimum wage, overtime pay, child labor, recordkeeping, and related employment standards for covered workers and employers.
The FLSA is enforced by the U.S. Department of Labor's Wage and Hour Division. It is especially important for employers, payroll teams, workers, and small businesses because wage and hour mistakes can create back pay, penalties, litigation, and operational risk.
Key Takeaways
- The FLSA is a federal wage and hour law.
- It covers minimum wage, overtime, child labor, and recordkeeping rules.
- Covered nonexempt employees generally must receive overtime after 40 hours in a workweek.
- Exemptions depend on facts, pay rules, duties, and regulations.
- State and local laws may provide greater worker protections.
How the FLSA Works
The FLSA applies to covered employers and employees. For many covered nonexempt employees, the law requires at least the federal minimum wage and overtime pay at one and one-half times the regular rate for hours worked over 40 in a workweek.
Some employees are exempt from certain FLSA requirements. Common exemptions include executive, administrative, professional, outside sales, and certain computer employee exemptions. These exemptions are technical and usually depend on pay and actual job duties.
Employers also need accurate time and payroll records. Problems often arise when employees are misclassified, off-the-clock work is ignored, bonuses are mishandled in overtime calculations, or state wage laws differ from federal rules.
Core FLSA Areas
Area | What it covers | Why it matters |
|---|---|---|
Minimum wage | Federal hourly pay floor | Sets baseline compensation |
Overtime | Premium pay after 40 hours for nonexempt workers | Major payroll compliance issue |
Child labor | Limits on youth work and hazardous jobs | Protects minors |
Recordkeeping | Payroll and time records | Supports compliance and audits |
Limits and Misunderstandings
The FLSA does not cover every workplace issue. It is not the same as anti-discrimination law, unemployment insurance, workers' compensation, family leave, or general contract law.
It also does not prevent states from setting higher standards. When federal, state, or local rules overlap, employers often need to follow the rule that provides greater protection to the worker.
This entry is educational, not legal advice. FLSA compliance depends on coverage, exemptions, job duties, pay practices, records, and applicable state and local law.
The Bottom Line
The FLSA is the foundation of federal wage and hour law. It matters because minimum wage, overtime, classification, child labor, and recordkeeping rules directly affect payroll, worker rights, and employer compliance.