Definition
The Fair Labor Standards Act (FLSA) is a federal law enacted in 1938 that sets standards for minimum wages, overtime pay, recordkeeping, and child labor for full-time and part-time workers in the private sector as well as in Federal, State, and local governments. Under the FLSA, covered nonexempt workers are entitled to a minimum wage and overtime pay at a rate of not less than one and one-half times their regular rates of pay for hours worked beyond 40 hours in a workweek.
Key Features
- Minimum Wage: Establishes a federal minimum wage that employers must pay to employees.
- Overtime Pay: Requires that covered employees receive time and a half for hours worked over 40 in a workweek.
- Child Labor: Sets restrictions on the employment of minors, aiming to ensure their health, well-being, and educational opportunities.
Examples
- Minimum Wage: If the federal minimum wage is $7.25 per hour, an employer must pay at least this amount to all covered nonexempt employees.
- Overtime Pay: An employee who earns $10 per hour and works 45 hours in a week would receive $10 per hour for the first 40 hours and $15 per hour (one and a half times the regular rate) for the remaining 5 hours.
- Child Labor: Prohibits children under a certain age (generally under 14) from working, with some exceptions like newspaper delivery or acting.
Frequently Asked Questions (FAQs)
What is the current federal minimum wage?
- The current federal minimum wage is $7.25 per hour as of the latest update. Some states have set higher minimum wages.
Who is covered by the FLSA?
- Most employees in the United States are covered by the FLSA. However, some employees are exempt, including certain salaried executives, administrative, and professional workers.
How is overtime pay calculated?
- Overtime pay is calculated at one and a half times the employee’s regular pay rate for any hours worked over 40 in a workweek.
Are there any exemptions to overtime pay under the FLSA?
- Yes, there are several exemptions, such as for salaried employees in executive, administrative, and professional roles, certain outside sales employees, and certain computer professionals.
Does the FLSA apply to part-time workers?
- Yes, the FLSA applies to both full-time and part-time workers.
What are the penalties for violating the FLSA?
- Employers can face fines, be required to compensate employees for unpaid wages, and, in certain cases, face criminal prosecution.
Related Terms
- Exempt vs. Nonexempt Employees: Key classifications under the FLSA that determine eligibility for overtime pay.
- Wage and Hour Division (WHD): A division of the U.S. Department of Labor responsible for enforcing the FLSA.
- Child Labor Laws: Regulations established by the FLSA to control the employment of minors.
Online References
- United States Department of Labor - FLSA
- Wage and Hour Division (WHD)
- Fair Labor Standards Act (FLSA) Summary - Legal Information Institute
Suggested Books for Further Studies
- “The Fair Labor Standards Act” by Ellen C. Kearns
- “Employment Law: New Challenges in the Business Environment” by John Jude Moran
- “Mastering The FLSA Overtime Exemptions” by Charles H. Fleischer
Fundamentals of the Fair Labor Standards Act (FLSA): Employment Law Basics Quiz
### When was the Fair Labor Standards Act (FLSA) enacted?
- [ ] 1936
- [x] 1938
- [ ] 1940
- [ ] 1942
> **Explanation:** The Fair Labor Standards Act (FLSA) was enacted in 1938 to establish minimum wage, overtime pay eligibility, recordkeeping, and child labor standards.
### What does the Fair Labor Standards Act (FLSA) regulate?
- [x] Minimum wage, overtime pay, and child labor standards
- [ ] Employee health benefits
- [ ] Unemployment benefits
- [ ] Pension plans
> **Explanation:** The FLSA regulates minimum wage, overtime pay, recordkeeping, and child labor standards but does not cover employee health benefits, unemployment benefits, or pension plans.
### What is the federal minimum wage as per the FLSA?
- [ ] $10.00 per hour
- [ ] $15.00 per hour
- [x] $7.25 per hour
- [ ] $9.50 per hour
> **Explanation:** As of the latest update, the federal minimum wage under the FLSA is set at $7.25 per hour.
### How is overtime pay calculated under the FLSA?
- [ ] Double the regular rate
- [ ] One-third of the regular rate
- [x] One and a half times the regular rate
- [ ] Two-thirds of the regular rate
> **Explanation:** Under the FLSA, overtime pay must be calculated at one and a half times the employee’s regular rate of pay for hours worked over 40 in a workweek.
### Which division of the U.S. Department of Labor is responsible for enforcing the FLSA?
- [x] Wage and Hour Division (WHD)
- [ ] Occupational Safety and Health Administration (OSHA)
- [ ] Employee Benefits Security Administration (EBSA)
- [ ] Bureau of Labor Statistics (BLS)
> **Explanation:** The Wage and Hour Division (WHD) of the U.S. Department of Labor is responsible for enforcing the Fair Labor Standards Act (FLSA).
### Who is generally exempt from overtime pay under the FLSA?
- [x] Executive, administrative, and professional employees
- [ ] Part-time workers
- [ ] Interns
- [ ] All hourly workers
> **Explanation:** Executive, administrative, and professional employees are generally exempt from overtime pay under the FLSA.
### What does the FLSA say about child labor?
- [x] It sets restrictions on the employment of minors to protect their health, well-being, and education.
- [ ] It allows unrestricted employment for children.
- [ ] It mandates minimum wage for child workers only in agriculture.
- [ ] It only sets rules for educational institutions employing minors.
> **Explanation:** The FLSA sets restrictions on the employment of minors to ensure their health, well-being, and educational opportunities.
### Are part-time workers covered by the FLSA?
- [x] Yes, both full-time and part-time workers are covered.
- [ ] No, only full-time workers are covered.
- [ ] Yes, but only if they work over 30 hours per week.
- [ ] No, part-time workers are exempt.
> **Explanation:** The FLSA covers both full-time and part-time workers without discrimination based on the number of hours worked.
### What happens if an employer violates the FLSA?
- [ ] They must shut down their business immediately.
- [ ] They receive a written warning.
- [x] They may face fines, required compensation for unpaid wages, and potentially criminal prosecution.
- [ ] They are given a two-year grace period to comply.
> **Explanation:** Employers who violate the FLSA may face fines, be required to compensate employees for unpaid wages, and could potentially face criminal prosecution.
### What is an example of an FLSA requirement for recordkeeping?
- [x] Employers must maintain accurate records of hours worked and wages paid.
- [ ] Employers must report monthly to the Department of Labor.
- [ ] Employers must conduct annual employee surveys.
- [ ] Employers must provide health insurance records.
> **Explanation:** Under the FLSA, employers are required to maintain accurate records of hours worked, wages paid, and other employment-related details.
Thank you for exploring the Fair Labor Standards Act (FLSA) and for taking on our insightful quiz. Keep advancing your knowledge of employment law and labor standards!
