The Fair Labor Standards Act is the primary federal law governing wages and hours in the United States. Enacted in 1938, it sets baseline protections that apply to most American workers regardless of their state of employment.
Minimum Wage Requirements
FLSA establishes a federal minimum wage that applies nationwide. Many states and cities have set higher minimum wages, and employers must pay whichever rate is higher. Tipped employees have different rules, with a lower cash wage allowed when tips bring total compensation above minimum wage.
Overtime Rules
Non-exempt employees must receive overtime pay at 1.5 times their regular rate for hours worked beyond 40 in a workweek. The distinction between exempt and non-exempt status depends on salary level and job duties, with specific tests for executive, administrative, professional, and other exemptions.
Recordkeeping Obligations
Employers must maintain accurate records of hours worked and wages paid. Required records include employee identifying information, hours worked each day and week, regular hourly rate, overtime earnings, deductions, and total wages paid each pay period.