FLSA
FLSA is a US federal law establishing minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers.
us-specific
Category
intermediate
Difficulty
7 min read
Read time
2025-01-15
Updated
Definition
Short definition
FLSA is a US federal law establishing minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers.
Detailed explanation
The Fair Labor Standards Act (FLSA), enacted in 1938, establishes federal minimum wage, overtime pay eligibility, recordkeeping, and youth employment standards for employees in private sector and government.
Covered non-exempt workers must receive overtime pay at 1.5 times regular rate for hours worked over 40 in a workweek. Exempt employees (meeting salary and duties tests) are not entitled to overtime.
The law is administered by the Wage and Hour Division of the Department of Labor and applies to enterprises engaged in interstate commerce or producing goods for interstate commerce.
Etymology
Part of New Deal legislation, enacted in 1938 under President Franklin D. Roosevelt.
Practical guidance
How it works
Employers must correctly classify positions as exempt or non-exempt, pay minimum wage, track hours for non-exempt workers, and pay overtime when due.
Best practices
Audit job classifications regularly
Use duties tests, not just job titles
Maintain accurate timekeeping
Train managers on overtime rules
Document classification decisions
Legal context
Legal basis
Fair Labor Standards Act of 1938 (29 U.S.C. §201 et seq.)
Jurisdiction: US Federal
Key provisions
Federal minimum wage ($7.25/hour, states may be higher)
Overtime at 1.5x for non-exempt employees over 40 hours/week
Exempt employee salary threshold ($684/week)
Exempt employee duties tests (executive, administrative, professional)
Recordkeeping requirements
Child labor protections
Official source
Frequently asked questions
What is the difference between exempt and non-exempt?
Exempt employees meet salary ($684/week) and duties tests and are not entitled to overtime. Non-exempt employees must be paid overtime for hours over 40. Classification depends on job duties, not job title.
Does FLSA require breaks or vacation?
No, FLSA does not require breaks, vacation, holiday pay, or sick leave. These are governed by state law or employer policy. However, short breaks (5-20 minutes) must be paid if provided.
Related glossary terms
Overtime Rate
Overtime rate measures the proportion of total hours worked that exceed standard working hours, indicating workload pressure and potential burnout risk.
Exempt Employee
Exempt employees are workers who are not entitled to overtime pay under FLSA, meeting both salary and duties tests for specific exemption categories.
Non-Exempt Employee
Non-exempt employees are entitled to overtime pay at 1.5x regular rate for hours worked over 40 in a workweek under FLSA.
Minimum Wage
The National Minimum Wage (NMW) and National Living Wage (NLW) are UK legal minimum hourly pay rates varying by age, with enforcement by HMRC.