What is the Fair Labor Standards Act

The Fair Labor Standards Act (FLSA) is a United States law that makes sure employers give fair compensation to workers. Rules for minimum pay, overtime pay, and youth employment are included in this law. Congress made the FLSA in 1938 and has changed it a few times since then. Employers must know and follow this law to give proper treatment of their workers. Whether a worker receives a set salary or earns money based on the hours they work are covered.

Why was the FLSA created?

FLSA is enacted to enhance working conditions. Rules for minimum pay, overtime pay, youth employment, and recordkeeping are covered in this law. FLSA affects many people, including those who work full-time or part-time in different kinds of jobs.  A special group called the Wage and Hour Division (WHD) was established by the FLSA to ensure compliance with its regulations. This group has workers all over the country, led by someone chosen by the president and approved by the U.S. Senate.

Who Does the FLSA Apply To?

FLSA covers many workers and workplaces, but not all. Some exceptions are made for both employers and the people they hire.

FLSA only affects employers who make at least $500,000 in sales each year or those who do business between different states (like getting orders from other states through letters, calls, or the internet). Employers like small farms that mostly use their own workers, do not have to follow these rules.

The FLSA rules directly affect regular employees and do not include freelancers or people who work on their own. The primary groups exempted from these regulations are:

• Executives, administrators, and professionals need to earn at least $684 every week as their salary (except for some jobs). Executives are in charge of managing at least two people, and making decisions about hiring, firing, and promotions. Administrators do office work for managers and use their own judgment in tasks. Professionals do mostly intellectual work that needs advanced knowledge, skills, and creativity.
• Salespeople who operate outside the office and earn their pay through commissions also receive distinct treatment.
• For computer workers (like analysts, programmers, software engineers, designers/developers), they should earn either at least $684 each week as salary or $27.63 per hour.

FLSA and Extra Working Hours

Before the FLSA , workers had to work long hours often more than necessary.  Now, they are limited to 40 regular hours a week.

The FLSA stated that work that goes beyond 40 hours (about 1 and a half days) a week is entitled toovertime pay. This extra pay is "time-and-a-half," which means you get your regular pay plus half of it again. If you make $10.00 per hour, your overtime pay would be $10.00 plus $5.00, making it $15.00 per hour.

FLSA and Basic Pay

The FLSA establishmed minimum wage, the lowest amount of money that non-exempt workers must receive to cover essential living expenses. When the FLSA started in 1938, minimum wage was twenty-five cents for every hour worked, and went up to forty cents by 1945. Over time, the minimum wage increased a few times because the cost of living went up. Eight increases happened in the federal minimum wage. The last increase happened in 2009, with $7.25 for every hour worked.

FLSA and Young Workers

The FLSA has regulations to prevent unfair treatment of children in the workplace. In most cases, it says that kids must be at least 14 years old to work and those under eighteen cannot do certain dangerous jobs. This ensures a safe workplace for young people.

FLSA Violations: What Can Go Wrong

The Fair Labor Standards Act (FLSA) can be tricky and mistakes can happen.  Here are some common things that can go wrong:

• Wrong job classification: Figuring out if someone is exempt (does not get overtime) or nonexempt (gets overtime) is not just about job titles. What the person does at work and how much they get paid is also considered.
• Confusing salaried and hourly: Some employers believe that a fixed weekly paymentis exempted from overtime.This is not always accurate. Even salaried people can get overtime depending on some factors.

Not paying for extra work: Doing work-related duties such astrainings or meetings outside the usual work hours, which is still work.

• On-call and breaks: Being on a break while managing work messages or awaiting a work call both constitute active working time.
• No agreement can waive overtime: Agreeing not to receive overtime pay is not permissible according to the FLSA.
• Averaging hours: Certain employers may attempt to calculate work hours over a two-week period to avoid paying overtime. This practice is prohibited.

It is important for employers to follow the rules of the FLSA for fair employee treatment.