Wages and the Fair Labor Standards Act (2024)

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    • Minimum Wage
    • Overtime Pay
    • Earnings thresholds for the Executive, Administrative, and Professional exemption from minimum wage and overtime protections under the FLSA
    • Hours Worked
    • Recordkeeping
    • Federal Wage Garnishments
    • Direct Care Workers

    Wages and the Fair Labor Standards Act (1)

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    NOTICE: On April 23, 2024, the U.S. Department of Labor (Department) announced a final rule, Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees, which will take effect on July 1, 2024. The final rule updates and revises the regulations issued under section 13(a)(1) of the Fair Labor Standards Act implementing the exemption from minimum wage and overtime pay requirements for executive, administrative, and professional (EAP) employees. Revisions include increases to the standard salary level and the highly compensated employee total annual compensation threshold, and a mechanism that provides for the timely and efficient updating of these earnings thresholds to reflect current earnings data.

    The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments. Covered nonexempt workers are entitled to a minimum wage of not less than $7.25 per hour effective July 24, 2009. Overtime pay at a rate not less than one and one-half times the regular rate of pay is required after 40 hours of work in a workweek.

    • FLSA Minimum Wage: The federal minimum wage is $7.25 per hour effective July 24, 2009. Many states also have minimum wage laws. In cases where an employee is subject to both state and federal minimum wage laws, the employee is entitled to the higher minimum wage.
    • FLSA Overtime: Covered nonexempt employees must receive overtime pay for hours worked over 40 per workweek (any fixed and regularly recurring period of 168 hours – seven consecutive 24-hour periods) at a rate not less than one and one-half times the regular rate of pay. There is no limit on the number of hours employees 16 years or older may work in any workweek. The FLSA does not require overtime pay for work on weekends, holidays, or regular days of rest, unless overtime is worked on such days.
    • Hours Worked: Hours worked ordinarily include all the time during which an employee is required to be on the employer’s premises, on duty, or at a prescribed workplace.
    • Recordkeeping: Employers must display an official poster outlining the requirements of the FLSA. Employers must also keep employee time and pay records.
    • Child Labor: These provisions are designed to protect the educational opportunities of minors and prohibit their employment in jobs and under conditions detrimental to their health or well-being.

    On January 10, 2024, the U.S. Department of Labor published a final rule Employee or Independent Contractor Classification Under the Fair Labor Standards Act, effective March 11, 2024, revising the Department’s guidance on how to analyze who is an employee or independent contractor under the Fair Labor Standards Act (FLSA). This final rule rescinds the Independent Contractor Status Under the Fair Labor Standards Act rule (2021 IC Rule, 86 FR 1168), that was published on January 7, 2021. This guidance will be updated.

    General Guidance

    • Handy Reference Guide to the FLSA
      • Guía Práctica Referente a la Ley de Normas Justas de Trabajo
    • Fact Sheets
    • Employment Law Guide: Minimum Wage and Overtime Pay
    • Questions and Answers about the FLSA
    • Information on Furloughs and Other Reductions in Pay
    • Break Time for Nursing Mothers
    • 'How to File a Complaint' Card (PDF)
      • Spanish Version (PDF)
      • Chinese Version (PDF)
      • Korean Version (PDF)
      • Polish Version (PDF)
      • Tagalog Version (PDF)
      • Thai Version (PDF)
      • Russian Version (PDF)
      • Vietnamese Version (PDF)
      • Haitian Creole Version (PDF)
    • FLSA Resources for Puerto Rico
    • Misclassification of Employees as Independent Contractors
    • Minimum Wage and Overtime Pay for Direct Care Workers
    • Holiday Season Employment Information
    • COVID-19or Other Public Health Emergencies and the FLSA

    Posters

    • FLSA Minimum Wage Poster
      • Spanish Version
      • Chinese Version (PDF)
      • Russian Version (PDF)
      • Thai Version (PDF)
      • Hmong Version (PDF)
      • Vietnamese Version (PDF)
      • Korean Version (PDF)
      • Polish Version (PDF)
      • Haitian Creole Version (PDF)
    • Additional FLSA Posters

    Interpretive Guidance

    • Administrator Interpretations
    • Opinion Letters
    • Field Handbook
    • Field Bulletins

    E-tools

    • The Coverage and Employment Status Advisor helps identify which workers are employees covered by the FLSA.
    • The Hours Worked Advisor provides information to help determine which hours spent in work-related activities are considered FLSA “hours worked” and therefore must be paid.
    • The Overtime Security Advisor helps determine which employees are exempt from the FLSA minimum wage and overtime pay requirements under the Part 541 overtime regulations.
    • The Overtime Calculator Advisor computes the amount of overtime pay due in a sample pay period based on information from the user.
    • The Child Labor Rules Advisor answers questions about the FLSA’s youth employment provisions, including at what age young people can work and the jobs they can perform.
    • The Section 14(c) Advisor helps users understand the special minimum wage requirements for workers with disabilities.

    Presentations

    • Comprehensive FLSA Presentation (Microsoft PowerPoint)
    • Executive, Administrative, and Professional Exemption Presentation (Microsoft PowerPoint)

    Applicable Laws and Regulations

    Law

    Regulations

    Civil Money Penalty Inflation Adjustments

    Starting in 2016, agencies across the federal government must adjust their penalties for inflation each year. Below is a table that reflects the adjustments that have occurred for penalties under this statute. For more information on the penalty adjustments, go here.

    Civil Money Penalty Inflation Adjustments
    Type of ViolationStatutory CitationCFR CitationMaximum Civil Monetary Penalty on or before 1/15/2024Maximum Civil Monetary Penalty on or after 1/16/2024
    Homeworker:

    Violation of recordkeeping, monetary, certificate or other statutes, regulations or employer assurances.

    29 USC 211(d)29 CFR 530.302$1,240$1,280
    Child labor:

    (1) Violation of child labor standards (sec 212 or 213(c));

    29 USC 216(e)(1)(A)(i)29 CFR 570.140(b)(1) and 29 CFR 579.1(a)(1)(i)(A)$15,138$15,629
    (2) Violation of child labor standards (sec 212 or 213(c)) that causes the serious injury or death of a minor;29 USC 216(e)(1)(A)(ii)29 CFR 570.140(b)(2) and 29 CFR 579.1(a)(1)(i)(B)$68,801$71,031
    (3) Willful or repeated violation of child labor standards (sec 212 or 213(c)) that causes the serious injury or death of a minor29 USC 216(e)(1)(A)(ii)29 CFR 570.140(b)(2) and 29 CFR 579.1(a)(1)(i)(B)$137,602$142,062
    (4) Repeated or willful violation of section 206 or 207.29 USC 216(e)29 CFR 579.1(a)(2)$2,374$2,451
    (5) Violation of section 203(m)(2)(B)29 USC 216(e)(2)29 CFR 579.1(a)(2)(ii) and 29 CFR 578.3(a)(1)$1,330$1,373
    Wages and the Fair Labor Standards Act (2024)

    FAQs

    What is the Fair Labor Standards Act in simple terms? ›

    The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in Federal, State, and local governments.

    What problem did the Fair Labor Standards Act try to solve? ›

    Passed at a time when wages were low, wage theft was prevalent, and homework and sweatshops were common, the FLSA was intended to set a minimum wage floor, prevent child labor, and to provide for overtime premium pay to curtail excessive hours.

    What was the Fair Labor Standards Act quizlet? ›

    FLSA provides 3 main mandates. requires that minimum wage be paid to all covered employees, requires that overtime pay is paid for work in excess of 40 hours per week, limits the employment of children. Minimum wage.

    What is the federal minimum salary for exempt employees in 2024? ›

    Beginning July 1, 2024, the Federal regulations will require employees who qualify for these exemptions to earn a minimum salary of $844.00 per week/$43,888.00 per year. Then, on January 1, 2025, that amount will increase again to $1,128.00 per week/$58,656.00 per year.

    What does FLSA mean on my paycheck? ›

    The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments.

    What employees are not covered by FLSA? ›

    Executive, administrative, professional and outside sales employees: (as defined in Department of Labor regulations) and who are paid on a salary basis are exempt from both the minimum wage and overtime provisions of the FLSA.

    What did the Fair Labor Standards Act outlawed? ›

    Roosevelt signed the Fair Labor Standards Act of 1938 (FLSA), which banned oppressive child labor, set the minimum hourly wage at 25 cents and set the maximum workweek at 44 hours for industries whose combined employment represented about 20 percent of the labor force, according to the Department of Labor's (DOL's) ...

    What is the federal minimum wage __________ per hour? ›

    The federal minimum wage for covered nonexempt employees is $7.25 per hour.

    Was the Fair Labor Standards Act relief, recovery, or reform? ›

    FAIR LABOR STANDARDS ACT (Reform) The last major piece of New Deal legislation (1938), this important labor law set minimum wage (25 cents and hour) and maximum hour standards (establishing the 40-hour work week). It also severely curbed the use of child labor.

    What is the most hours a salaried employee can work? ›

    There are no maximum or minimum hour requirements for salaried employees. If an employee works more than 40 hours, their pay will not reflect overtime hours. Likewise, if an employee works fewer than 40 hours, an employer can't reduce their pay.

    What is the new overtime rule? ›

    Beginning July 1, salaried workers making less than $43,888 will become eligible for overtime pay, and on Jan. 1, 2025, eligibility extends to those making less than $58,656. Employees earning salaries below these thresholds will be paid at least time-and-a-half for working beyond 40 hours in a single workweek.

    What are the three factors to determine exempt or nonexempt? ›

    In most cases, there are three simple requirements to determine whether a worker is an exempt employee under California law:
    • Minimum Salary. The employee must be paid a salary that is at least twice the state minimum wage for full-time employment. ...
    • White Collar Duties. ...
    • Independent Judgment.
    Feb 16, 2023

    What is the difference between FLSA exempt and nonexempt? ›

    To determine if a job is exempt (not subject to overtime) or nonexempt (required to be paid overtime at time and a half), a job must meet the salary threshold for exempt status. Once a job meets that criteria, the FLSA uses five primary exemption tests to determine exempt status: Executive test. Administrative test.

    What did the Fair Labor Standards Act of 1938 do for child labor? ›

    The FLSA establishes an 18-year minimum age for those nonagricultural occupations that the Secretary of Labor finds and declares to be particularly hazardous for 16- and 17-year-old minors, or detrimental to their health or well-being.

    How does the Fair Labor Standards Act (FLSA) affect the importance of the job description? ›

    How does the Fair Labor Standards Act​ (FLSA) affect the importance of the job​ description? The FLSA uses the job description to determine whether an employee is exempt or nonexempt.

    References

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