Global HR Glossary

What is the Fair Labor Standards Act (FLSA)?

The Fair Labor Standards Act (FLSA) is a critical U.S. federal law that establishes minimum wage, overtime pay eligibility, record keeping, and child labor standards affecting full-time and part-time workers in the private sector and in federal, state, and local governments. 

Purpose and Enforcement of the FLSA 

The key provisions of the FLSA include:

• Minimum Wage: Sets a federal baseline hourly rate.
• Overtime Pay: Mandates time-and-a-half pay for over 40 hours per week for non-exempt employees.
• Recordkeeping: Requires employers to track and record hours worked and wages paid.
• Child Labor: Implements rules to protect minors from employment in hazardous conditions. 

The FLSA is enforced by the Wage and Hour Division of the U.S. Department of Labor, ensuring that employers comply with the law to avoid significant penalties, such as back pay for affected employees and fines.