Legal Definitions - Fair Labor Standards Act

The Fair Labor Standards Act (FLSA) is a fundamental federal law in the United States that establishes core standards for wages, hours, and employment conditions for most workers. Enacted during the New Deal era, its primary purpose is to protect employees by setting basic rights and protections in the workplace.

Key provisions of the FLSA include:

• Minimum Wage: It mandates a federal minimum wage that most employers must pay their employees. If a state or local minimum wage is higher, employers must pay the higher amount.
• Overtime Pay: It requires employers to pay eligible employees at least one and a half times their regular rate of pay for all hours worked over 40 in a workweek. Certain employees, typically those in executive, administrative, professional, or outside sales roles who meet specific salary and duties tests, may be exempt from overtime requirements.
• Child Labor Protections: It restricts the employment of minors, setting rules for the minimum age for employment, the types of jobs they can do, and the hours they can work, particularly for those under 16.
• Record-Keeping: It requires employers to keep accurate records of wages, hours, and other employment conditions for their employees.

It is important to understand that the FLSA generally applies to employees, not independent contractors. However, employers who intentionally misclassify employees as independent contractors to avoid these legal obligations can face significant penalties.

Here are some examples illustrating the application of the Fair Labor Standards Act:

• Example 1: Minimum Wage Violation

  Imagine a small, family-owned diner that pays its dishwashers $6.50 per hour, believing that because they are a local business, they are not subject to federal wage laws. This situation would likely violate the FLSA. The Act mandates a federal minimum wage, and most businesses, even small ones, are covered if they engage in interstate commerce or meet certain revenue thresholds. The dishwashers should be paid at least the federal minimum wage (or a higher state or local minimum wage if applicable), and the employer could face penalties for underpaying them.

• Example 2: Overtime Pay Entitlement

  Consider a junior graphic designer who works for a digital marketing agency. She regularly works 45 hours a week, but her employer only pays her for 40 hours, stating that she is a "salaried employee" and therefore not eligible for overtime. Unless the graphic designer meets specific criteria for an "exempt" employee under the FLSA (which typically involves a high salary threshold and specific job duties that are primarily executive, administrative, or professional in nature), she is likely entitled to overtime pay for the 5 hours worked beyond 40 in a week. The FLSA prevents employers from simply labeling an employee as "salaried" to avoid paying overtime.

• Example 3: Child Labor Restrictions

  A 15-year-old high school student is hired by a roofing company to help carry shingles and operate a nail gun on construction sites during the summer. This scenario would violate the FLSA's child labor provisions. The Act prohibits minors under 18 from working in hazardous occupations, which typically includes roofing and operating power-driven tools like nail guns. Furthermore, it sets limits on the hours and types of work that 14- and 15-year-olds can perform, generally restricting them to non-hazardous jobs during non-school hours and for limited durations.