Fair Labor Standards Act

The Fair Labor Standards Act (FLSA) was established in 1938 under the government of President Franklin D. Roosevelt. It focuses on establishing standard pay for employees to prevent unfair compensation. This U.S. labor law defines minimum wage, overtime pay, and prohibits child labor.

The FLSA is a federal law that provides employees with a sense of security by preventing unjust or irregular pay. It establishes minimum wage, overtime pay, recordkeeping, and employment standards affecting employees in both the private and public sectors.

Characteristics of FLSA:

Payment of Minimum Wages

According to the government, employers subject to the Fair Labor Standards Act must pay a current federal minimum wage of $7.25 per hour, effective from July 24, 2009. As of January 1, 2013, 19 states and the District of Columbia have minimum wage rates higher than the federal minimum wage.

Overtime Pay

Employers are required to pay one and a half times the regular rate if an employee works overtime. Regular payment must be given for all hours worked over 40 hours in a week.

Record Keeping

Every employer must keep accurate records of identifying details, hours worked, wages earned, and other essential employee information.

Strictly Abolishes Child Labor

Children under 18 are not allowed to engage in hazardous jobs such as excavation, mining, or manufacturing explosives. Children under 16 are restricted from working in manufacturing companies, mining, and similar industries.

FLSA Exemptions

The FLSA does not apply to all employees. Some exemptions include employees in computer-related occupations (such as system analysts and programmers), domestic service workers providing companionship in private homes, agricultural workers, seasonal workers, outside salespeople, freelancers, independent contractors, and consultants.

Violations of FLSA

• Laying off or discriminating against an employee for filing a complaint or participating in an FLSA-related legal proceeding.
• Willingly violating FLSA laws can result in fines up to $10,000. A second willful violation may lead to imprisonment.
• Violations involving child labor can result in penalties up to $10,000 for each affected employee.
• The FLSA prohibits the shipment of goods produced in violation of minimum wage, overtime pay, child labor, or special minimum wage provisions.
• Averaging work hours — e.g., 25 hours one week and 55 hours the next, claiming it averages to 40 hours weekly — is a violation. Employees can claim overtime pay for the 55-hour week.
• Permissible work hours for 14–15-year-old students are:
• • 3 hours on a school day
  • 18 hours in a school week
  • 8 hours on a non-school day
  • 40 hours in a non-school week