Fair Labor Standards Act (FLSA)

What is Fair Labor Standards Act (FLSA)?

The Fair Labor Standards Act (FLSA) is a foundational piece of US employment legislation enacted in 1938 to protect workers from exploitative pay practices. It sets the federal minimum wage, requires overtime pay at one and a half times the regular rate for hours worked beyond 40 in a workweek, and places restrictions on child labour.

Why Fair Labor Standards Act (FLSA) Matters

The FLSA applies to most private and public sector employees, though certain workers are classified as exempt based on their job duties and salary level. Employers must maintain accurate records of hours worked and wages paid. Violations of the FLSA can result in back pay, penalties, and legal action, making compliance a key responsibility for HR departments.