Fair Labor Standards Act (FLSA)

The Fair Labor Standards Act

The Fair Labor Standards Act (FLSA) is a federal law that applies to most private and public employment in the United States. The FLSA requires covered employers to pay non-exempt employees at least the federal minimum wage and overtime pay for all hours worked over 40 in a workweek.

Covered Employees and Compensable Hour

Covered employees must be paid for all hours worked in a workweek. In general, compensable hours include any time an employee is on duty, at a designated work location, or otherwise suffered or permitted to work. This generally includes:
– Work performed remotely or at home
– Travel time (if it occurs during the workday or as part of the job)
– Waiting time (if controlled by the employer)
– Attendance at mandatory training or meetings
– Trial or probationary periods (if performing productive work)
Commuting time from home to a regular worksite is generally not compensable.

Federal Minimum Wage

The current federal minimum wage is:
– $7.25 per hour, effective since July 24, 2009
Many states and cities have established higher minimum wage rates. When both federal and state laws apply, the law more favorable to the employee governs.

Tipped Employees

Employers may pay tipped employees as little as $2.13 per hour in direct wages and take a tip credit to make up the difference to minimum wage if the following conditions are met:
– The employee regularly receives more than $30 per month in tips
– The employee retains all tips (unless in a valid tip pool, which can only include other tipped employees)
– The employer informs the employee in advance about the tip credit
– The employee’s total earnings (wages + tips) equal at least $7.25 per hour

If the employee’s tips combined with cash wages do not equal the minimum wage, the employer must make up the difference.

Overtime Pay

Non-exempt employees must be paid 1½ times their regular rate of pay for all hours worked over 40 in a workweek.

There is no requirement for overtime pay for work on weekends, holidays, or regular days of rest—unless overtime hours are triggered.

What the Fair Labor Standards Act Does NOT Require

The FLSA does not regulate the following employment practices:
– Vacation, holiday, severance, or sick pay
– Meal or rest periods, holidays off, or paid vacation time
– Premium pay for weekend or holiday work
– Pay raises or fringe benefits
– A discharge notice or reason for termination (unless the termination is in retaliation for complaining about a possible FLSA violation)
– Unemployment compensation
– Pay stubs or W-2 forms
The FLSA also does not require:
– Payment of promised wages that exceed minimum wage or overtime
– Commission payments (unless they impact overtime under certain exemptions)
– Limits on the number of hours worked in a day or week for employees 16 and older

These matters are typically governed by state law or individual agreements between the employer and employee (or a union). For example, some states require meal and rest breaks, prompt payment of final wages, or detailed wage statements. Employers must comply with the most protective applicable law.

The information provided above is for general informational purposes only and does not constitute legal advice. The Fair Labor Standards Act and related employment laws can be complex, and how they apply may vary based on the specific facts of your situation. If you believe your workplace rights have been violated, you should consult with an experienced employment attorney to obtain advice tailored to your individual circumstances.