FLSA: What It Is, Why It Matters, and More Vital Information to Know

Written by Staff

August 26, 2016

23050801LC FLSA: What It Is, Why It Matters, and More Vital Information to Know HERO

The workplace setting evolves continuously. Back then, most firms associated skills with gender or age. As a result, this can disrupt equality when it comes to job roles. But in this day and age, there have been numerous progresses to promote fairness in the workplace setting.


More firms aim to apply fairness and equal treatment for all workers. Fortunately, there are laws like the FSLA that promote these values. Now, more workers can feel confident that they will receive fair treatment when it comes to employment concerns.

What is FLSA?

FLSA stands for Fair Labor Standards Act of 1938. This law decides the right of workers and the obligations of an employer in the United States. It tells of a worker’s right to minimum wage, overtime pay rules, the company’s record-keeping needs.

It also decides limits to the hours of work and standards on child labor. This law applies workers in the private sector, and in the local, state, and Federal government. Companies that do not follow FLSA may suffer from fines, lawsuits, and reputational damage.

Why FLSA Matters?

The FLSA is critical for many reasons. This law regulates the minimum wage pay for most workers. As a result, workers are aware of the guaranteed pay they should receive for a specific job.

It also ensures workers of sensible working hours. This applies especially for workers younger than 16 years old. The tells of the limitations of work hours for young workers during school days and non-school days.

This law also manages a company’s compliance with laws for employment. This covers fair pay and favorable working conditions. It would be tough to manage unfair practices without the FLSA.

FLSA Status

Job roles fall into two categories. These are the exempt workers and non-exempt ones. These are the FLSA status.


These are workers that do not receive overtime pay. These workers typically earn at least $35,658 annually. They receive their compensation on a salary basis and perform exempt job roles.



These are workers that receive overtime pay. This means they can receive minimum wage plus overtime pay when they work over 40 hours per week.

Main Provisions of FLSA

Companies need to be aware of the updates about FLSA to ensure they follow it. Here are the five major provisions of this law.

  1. Minimum wage

The FLSA decides the minimum wage of Federal workers, the subminimum wage, and any related exemptions. The law also says that firms must follow state and Federal minimum wage pay whichever is higher.

  1. Overtime

This law includes provisions relating to overtime pay. It decides whether a company must pay its workers overtime pay or not depending on their FLSA status. This applies to workers receiving less than $35,568 annually and earning on an hourly basis.

  1. Employer record-keeping

The law also requires companies to keep records on wages, hours, and other employee concerns. FLSA states that companies must keep these records for a minimum of three years.

  1. Working hours

The FLSA also carries provisions on the number of hours a worker must be on duty. This means that a company should pay workers for all the hours they spend working. This applies to working on the premises or remotely.

  1. Child labor

FLSA also has provisions on child labor. This is to prevent children from harsh working conditions. It also puts limit to the number of hours that a child should work.

FLSA Updates of 2022

There are notable updates with the FLSA that companies need to take note of. This is vital to ensure that companies are always in compliance with the FLSA. Some of these updates are as follows:

  1. The rise of the standard salary threshold from $455 per week to $684 per week.
  2. Eligibility of workers earning less than $684 per week for a time-and-a-half pay for overtime work.
  3. Increasing the threshold exemption for high-paying workers from $100,000 annually to $107,432 annually.
  4. Using bonuses and incentives to satisfy up to 10% of a worker’s standard salary level under the new overtime rule.


Companies can implement fairness within the workplace in many ways. One of these ways is by following laws such as the FLSA. This helps promote and impose fair treatment for workers especially when it comes to their salary, overtime pay, hours of work, and others.

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