FLSA
What Does the Fair Labor Standards Act (FLSA) Require Employers to Do?
The Fair Labor Standards Act (FLSA) is the federal law establishing minimum wage, overtime pay, recordkeeping, and child labor standards. It determines which employees are exempt or non-exempt from overtime requirements.
Enacted in 1938, the FLSA sets the federal minimum wage floor ($7.25/hour, unchanged since 2009), requires overtime pay of at least 1.5x the regular rate for non-exempt employees, mandates payroll recordkeeping, and restricts hours and types of work for minors.
States and cities are free to set more generous standards, and employers must follow whichever standard is more favorable to the employee. The exemption framework is one of the FLSA’s most consequential provisions in practice.
FLSA Key Facts on Minimum Wage and Overtime Rules:
- Federal minimum wage: $7.25/hour (unchanged since 2009).
- Requires 1.5x regular rate overtime for non-exempt employees over 40 hours/week.
- Sets recordkeeping requirements and child labor restrictions.
- States/cities can set more protective standards; the more favorable-to-employee rule applies.
Frequently Asked Questions
Does the FLSA set the exact minimum wage every employer must pay?
No—it sets the federal floor of $7.25/hour; states and cities can set higher minimums that take precedence.
What does the FLSA require for recordkeeping?
Accurate records of hours worked and wages paid, generally retained at least three years.
Who determines exempt status under the FLSA?
A minimum salary threshold and a specific duties test—not job title alone.
Does the FLSA require paid rest breaks or lunch breaks?
No—the FLSA itself doesn’t require breaks, but if an employer offers short breaks they’re generally paid, and state law may impose its own break requirements.
Can salaried employees still be entitled to overtime under the FLSA?
Yes—being paid a salary doesn’t automatically make someone exempt; they must also meet the duties test and earn above the minimum salary threshold.
Related terms: Job Classification: Exempt vs. Non-Exempt, Overtime Calculation, Minimum Wage by State