Understanding the Employment Fair Labor Standards Act (FLSA) and Its Implications

Definition & Meaning

The Fair Labor Standards Act (FLSA) is a federal law that sets standards for minimum wage, overtime pay, recordkeeping, and child labor for both full-time and part-time workers in the private sector, as well as for federal, state, and local government employees. Under the FLSA, covered nonexempt workers must receive at least $7.25 per hour as a minimum wage, a rate that has been in effect since July 24, 2009. Additionally, workers are entitled to overtime pay at a rate of at least one and one-half times their regular pay rate for hours worked over 40 in a workweek.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A retail employee works 45 hours in a week. Under the FLSA, they must be paid for 40 hours at their regular rate and 5 hours at an overtime rate of one and one-half times their regular pay.

Example 2: A state agency employs a firefighter who works 50 hours in a week. If the state has specific overtime regulations, the firefighter may be entitled to overtime pay according to the higher standard set by either state or federal law. (hypothetical example)

State-by-state differences

State Minimum Wage Overtime Laws
California $15.50 Overtime after 8 hours in a day
Texas $7.25 Overtime after 40 hours in a week
New York $14.20 Overtime after 40 hours in a week

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term Description Key Differences
Minimum Wage The lowest legal wage that can be paid to workers. Minimum wage is a component of the FLSA, which also includes overtime and child labor standards.
Overtime Pay Compensation for hours worked beyond the standard workweek. Overtime pay is mandated by the FLSA for nonexempt employees, while some states have additional requirements.

What to do if this term applies to you

If you believe your rights under the FLSA have been violated, consider the following steps:

  • Review your pay stubs and work hours to ensure compliance with minimum wage and overtime standards.
  • Document any discrepancies and gather evidence, such as emails or timecards.
  • Consult with a legal professional for advice tailored to your situation.
  • You can also explore US Legal Forms for templates that may assist you in filing a wage claim.

Quick facts

  • Minimum Wage: $7.25 per hour federally
  • Overtime Rate: 1.5 times the regular pay rate after 40 hours
  • Recordkeeping Requirements: Employers must maintain accurate records of hours worked and wages paid
  • Child Labor Restrictions: Limits on hours and types of work for minors

Key takeaways

Frequently asked questions

The federal minimum wage is $7.25 per hour, but some states have set higher minimums.