Fair Labor Standards Act: An Overview
Background of the FLSA
Enacted in 1938 as part of the New Deal, the Fair Labor Standards Act (FLSA) is a federal law that sets minimum wage, overtime pay, recordkeeping, and youth employment standards for employees in the private sector and federal, state, and local governments.
Key Provisions of the FLSA
Minimum Wage
The FLSA establishes a federal minimum wage for covered employees. Currently, the federal minimum wage is $7.25 per hour. However, many states and localities have set higher minimum wages that apply to employers within their jurisdictions.
Overtime Pay
The FLSA requires employers to pay overtime pay to covered employees who work more than 40 hours in a workweek. The overtime rate is 1.5 times the employee's regular rate of pay.
Recordkeeping
The FLSA requires employers to maintain certain records for each covered employee, including hours worked, wages paid, and deductions from wages.
Youth Employment
The FLSA sets restrictions on the employment of minors, including minimum age requirements and limitations on the number of hours that minors can work.
Exemptions to the FLSA
The FLSA contains a number of exemptions that apply to certain employees or types of employment. These exemptions include:
- Executive, administrative, and professional employees
- Outside sales employees
- Certain agricultural workers
- Employees of small businesses
Enforcement of the FLSA
The FLSA is enforced by the Wage and Hour Division of the U.S. Department of Labor. The Division investigates complaints of FLSA violations and can take enforcement actions, such as issuing citations and imposing fines.
Recent Amendments to the FLSA
The FLSA has been amended several times since its enactment in 1938. In recent years, the most significant amendments include:
- The Lilly Ledbetter Fair Pay Act of 2009, which made it easier for employees to pursue equal pay discrimination claims
- The Fair Labor Standards Act Amendments of 2016, which increased the minimum wage for federal contractors
Conclusion
The Fair Labor Standards Act is a complex law that has a significant impact on the lives of millions of American workers. Employers should be aware of the FLSA's requirements and should take steps to comply with the law. Employees who believe that they have been denied their rights under the FLSA should contact the Wage and Hour Division of the U.S. Department of Labor.
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