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Understanding the Fair Labor Standards Act: Protection for Workers in the U.S.

The Fair Labor Standards Act (FLSA) of 1938 sets the groundwork for employee compensation by mandating a minimum wage and overtime pay for those working over 40 hours a week. It aims to prevent pay discrimination based on gender while safeguarding a living wage for all workers. The Act is enforced by the Department of Labor's Wage and Hour Division, regulating child labor and ensuring fair wage practices. Employers must adhere to recordkeeping requirements and ensure compliance with the law to avoid violations.

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Understanding the Fair Labor Standards Act: Protection for Workers in the U.S.

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Presentation Transcript

  1. CHAPTER TWENTY Fair Labor Standards Act

  2. Statutory Basis • Fair Labor Standards Act of 1938, as amended, requires employers to pay his or her employees a minimum wage and requires overtime pay for work in excess of forty hours per week

  3. Show Me the Money! • Minimum wage is the least amount a covered employee must be paid in hourly wages • FLSA also prohibits pay differentials based solely on gender • Purpose is to ensure that all workers maintain a standard of living that keeps them from poverty

  4. General Provisions • Administered by Department of Labor’s Wage and Hour Division • Regulates child labor, wages and hours • Requires recordkeeping by employers • Contains antiretaliation provisions • Employees may receive back pay in cases of violations

  5. Covered Employees • Individual coverage • Employees whose jobs directly involve interstate commerce • Enterprise coverage • All employees of businesses engaged in interstate commerce • Federal employees are covered • Covers most state and local government employees

  6. Minimum Wage • Minimum hourly wage currently $5.15 per hour (up from $.25 per hour in 1938) • Overtime rate is one and one-half times the employee’s regular hourly rate • Exemptions exist for both the wage and overtime provisions

  7. Maximum Hours • FSLA does not limit the number of hours employees may work • Established 40 hours as a normal workweek • Comp time may be substituted for overtime pay in some situations

  8. Child Labor Laws • Most children cannot work before age 16 • Age 18 is the minimum age for hazardous work • Children between the ages of 14 and 16 may work at certain job types • State laws may be more strict and, if so, override federal law

  9. Management Considerations • Do not make exceptions to child labor laws • Excessive overtime may indicate the need for more employees • Know which employees are exempt from wage and hour laws • Conduct periodic workplace audits to ensure efficiency

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