Fair Labor Standards Act

The Fair Labor Standards Act, commonly abbreviated as FLSA, is a U.S. federal law that establishes foundational labor standards for workers employed within the United States, including minimum wage requirements, overtime pay rules, recordkeeping obligations, and restrictions on youth employment. Enacted in 1938 and amended numerous times since, the FLSA remains the primary federal law governing basic wage and hour standards for most American workers. One of the FLSA's most significant provisions is the distinction it draws between exempt and non-exempt employees, determining which workers are entitled to overtime pay for hours worked beyond 40 in a workweek and which are not, based on factors such as job duties and salary level. The law also sets the federal minimum wage, though many states and cities have enacted higher minimum wage requirements that take precedence over the federal floor. Compliance with the FLSA requires employers to correctly classify employees, accurately track hours worked for non-exempt staff, and calculate overtime pay according to the law's specific formulas. Violations can result in significant back pay liability, penalties, and legal costs, which is why many companies invest in payroll systems and HR compliance expertise specifically designed to ensure accurate FLSA compliance across their U.S. workforce.