Glossary > Employment Law > Wage And Hour Laws > Minimum Wage Requirements

Fair Labor Standards Act

The Fair Labor Standards Act (FLSA) is a federal law that sets standards for minimum wage, overtime pay, recordkeeping, and youth employment in the United States.

Example #1

Example 1: The FLSA ensures that eligible employees are paid at least the federal minimum wage, which is currently $7.25 per hour.

Example #2

Example 2: 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 any hours worked over 40 in a workweek.

Misuse

Misuse of the FLSA can occur when employers misclassify employees as exempt from overtime pay when they should be classified as non-exempt. This can lead to employees being deprived of their rightful overtime pay, undermining their financial well-being. It is crucial to protect against misuse to ensure that workers receive fair compensation for their labor.

Benefits

One of the benefits of the FLSA is that it helps protect employees from exploitation by setting minimum wage and overtime pay standards. For example, employees in industries with a history of underpaying workers can rely on the FLSA to ensure they receive fair compensation for their work.

Conclusion

The Fair Labor Standards Act plays a crucial role in safeguarding the rights and financial security of employees by establishing minimum wage and overtime pay standards. By upholding the FLSA, employees are protected from exploitation and can expect fair compensation for their work.

Last Modified: 4/30/2024