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Fair Labor Standards Act (FLSA)

Fair Labor Standards Act (FLSA)

The Fair Labor Standards Act (FLSA) is a federal labor law that sets many of the parameters for the modern American workplace, including rules governing:

Minimum wage

Rules set by the Department of Labor’s Wage and Hours Division state that an employee is entitled to a minimum wage of $7.25 per hour, although state and local regulations may require a higher wage.

Paid overtime

FLSA rules stipulate that employers must pay at least one and one-half times the regular rate for each extra hour after a worker has put in 40 hours in a workweek. Some employees working for more than one related employer at the same time — a contractor and subcontractor, for example, may be eligible for overtime pay under the FLSA’s joint employer rule.

Recordkeeping

Under the FLSA, all eligible employees must record and submit the number of hours worked in a week.

Child labor

The FLSA sets age limits and rules for the kinds of work that can be performed by minors, including exceptions for family businesses.

Tipped employees

The FLSA sets rules prohibiting employers from using employee tips for any purpose other than a credit against the employee’s minimum wage earnings, including regulations on tip credits and tip pooling.

Most hourly employees working in both the public and private sector are covered by the FLSA.  Salaried employees with specific job duties — including certain executives, administrators, expert professionals, skilled computer workers, and outside sales employees — are exempt from the FLSA.

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