What Is the Fair Labor Standards Act (FLSA) and Its Key Provisions?

TL;DR

The Fair Labor Standards Act (FLSA) establishes essential labor standards, including a minimum wage of $7.25 per hour and overtime pay at 1.5 times the regular rate for non-exempt employees working over 40 hours in a week. It also includes child labor regulations, requiring restrictions on work hours for minors and prohibiting hazardous occupations. Employers must keep accurate records of wages, hours, and other relevant information.

Transcript

HR basics is a series of short courses designed to highlight what you need to know about a particular human resource management topic in today's HR basics we explore the Fair Labor Standards Act known as the FLSA the Fair Labor Standards Act or FLSA establishes a minimum wage overtime pay record-keeping and child labor standards the wage and hour d... Read More

Key Insights

• 👮 The FLSA establishes minimum wage laws, which vary by state, and requires employers to pay at least the higher minimum wage if subject to both state and federal laws.
• 💁 Tipped employees must receive a direct wage of at least $2.13 per hour, and if their tips don't equal the minimum wage, the employer must make up the difference.
• ☠️ Overtime pay at a rate of 1.5 times the regular rate of pay is mandatory for covered non-exempt employees working over 40 hours in a workweek.
• 😒 The FLSA allows employers to use exemptions for white-collar employees who meet salary and duties tests but doesn't apply to manual laborers or blue-collar workers.
• 💦 Record-keeping is essential under the FLSA, with specific requirements for personal information, hours worked, wages, and other details.
• 🤕 Child labor provisions in the FLSA set restrictions on work hours for minors under 16 and ban hazardous occupations for minors declared by the Secretary of Labor.
• 🤕 Different rules apply to child labor in non-farm and agricultural jobs, with specific limitations on permissible work hours for different age groups.

Questions & Answers

Q: Which employees are covered by the Fair Labor Standards Act?

The FLSA covers employees in private employment, state and local government, and certain enterprises engaged in interstate commerce. It does not apply to manual laborers or blue-collar workers.

Q: Can employers use tips to meet minimum wage requirements?

Yes, employers can consider tips as part of wages for tipped employees, but they must pay at least $2.13 per hour in direct wages and ensure the employee's tips combined with the direct wages equal at least the applicable minimum wage.

Q: How is overtime pay calculated under the FLSA?

Covered non-exempt employees are entitled to overtime pay at a rate of 1.5 times their regular rate of pay for hours worked over 40 in a workweek. There is no limit on the number of hours employees 16 years or older can work in a workweek.

Q: What are the record-keeping requirements under the FLSA?

Employers must keep records on wages, hours, and other items specified in the DOL regulations. This includes personal information, total hours worked, daily or weekly earnings, overtime pay, deductions or additions to wages, and more.

Summary & Key Takeaways

• The FLSA sets a minimum wage of $7.25 per hour for covered non-exempt workers, with some states having higher minimum wage laws.

• Tipped employees can have their tips considered as part of wages, but the employer must pay at least $2.13 per hour in direct wages.

• Covered non-exempt employees must receive overtime pay at a rate of 1.5 times their regular rate of pay for hours worked over 40 in a workweek.