| Fair Labor Standards Act |
| Quick Links |
| State Labor Sites |
The Fair Labor Standard Act (FLSA) sets minimum wage, overtime, and minimum age
requirements for employers. There is no minimum number of employees that must work for an
employer before the employer is responsible to comply with FLSA standards. The FLSA creates
two classifications of employees for purpose of minimum wage rates and overtime. The two
classifications of employees are exempt and non-exempt. Also, the FLSA only sets minimum
labor standards. Many states have enacted higher minimum wage rates and more stringent
overtime requirements. For state minimum wage and overtime requirements, click here.
Exempt Employees
Employers do not need to pay exempt employees the mandated minimum wage rate or
overtime as long as the statutory exemption requirements are met. For a summary of those
requirement, read the DOL's exemption fact sheets. Currently, the misclassification by
employers of employees as exempt is one of the most active areas of enforcement for the DOL.
If you are an employer, you need to make sure the employees you current have classified as
exempt are truly exempt. Employers that improperly classify employees as exempt are generally
required to reimburse the improperly classified employees for the income lost due to the
improper classification. Employers may also be subject criminal prosecution and fines up to
$10,000 or $1,000 per violation depending on the willfulness of the violation.
Non-exempt Employees
For non-exempt employees, the FLSA sets minimum wage rates and overtime requirements.
Minimum Wage:
Currently, the standard federal minimum wage is $6.55 per hour. (To see state minimum wage
rates click here.)
On July 24, 2009, the rate will increase to $7.25.
Employees under the age of 20 may be paid not less than $4.25 per hour for the first 90
consecutive calendar days of employment. The 90 consecutive calendar days include both
days worked and days not worked.
If employees received tips as part of their wages, they must be paid a minimum of $2.13 per
hour and there total wages (wages + tips) must be equal or greater than the standard minimum
wage rate. (Other requirements must be met for an employer to be able to pay the $2.13 wage
rate).
Failure to comply with minimum wage laws can result in monetary penalties and imprisonment
depending on the gravity and willfulness of the violation.
Overtime:
An employer must pay a non-exempt employee a minimum of 1-1/2 times their base wage rate
for all hours worked over 40 in a workweek. There is no federal law limiting the number of
hours an employer can require a non-exempt employee to work so long as they pay overtime.
Like with minimum wage rates, some states have more stringent overtime laws.
To see your state's overtime laws click here.
Child Labor Laws and Minimum Age Requirement
The basic rule is:
Additional restrictions and limitations may apply depending on the situation.
States also have established child labor laws. For more information on State child labor laws
visit Child Labor Laws.
Lunch and Breaks
For federal and state meal, lunch, and break requirements, visit our Meals and Breaks page.
Posting Requirements
To comply with the FLSA, an employer must post a notice in a conspicuous place explaining the
FLSA, including the current minimum wage rate and overtime requirements. A poster that
complies with the FLSA requirement can be downloaded from the DOL.gov. States may have
posting requirements in addtion to the federal requirements. Click here to see your state's
posting requirements.
requirements for employers. There is no minimum number of employees that must work for an
employer before the employer is responsible to comply with FLSA standards. The FLSA creates
two classifications of employees for purpose of minimum wage rates and overtime. The two
classifications of employees are exempt and non-exempt. Also, the FLSA only sets minimum
labor standards. Many states have enacted higher minimum wage rates and more stringent
overtime requirements. For state minimum wage and overtime requirements, click here.
Exempt Employees
Employers do not need to pay exempt employees the mandated minimum wage rate or
overtime as long as the statutory exemption requirements are met. For a summary of those
requirement, read the DOL's exemption fact sheets. Currently, the misclassification by
employers of employees as exempt is one of the most active areas of enforcement for the DOL.
If you are an employer, you need to make sure the employees you current have classified as
exempt are truly exempt. Employers that improperly classify employees as exempt are generally
required to reimburse the improperly classified employees for the income lost due to the
improper classification. Employers may also be subject criminal prosecution and fines up to
$10,000 or $1,000 per violation depending on the willfulness of the violation.
Non-exempt Employees
For non-exempt employees, the FLSA sets minimum wage rates and overtime requirements.
Minimum Wage:
Currently, the standard federal minimum wage is $6.55 per hour. (To see state minimum wage
rates click here.)
On July 24, 2009, the rate will increase to $7.25.
Employees under the age of 20 may be paid not less than $4.25 per hour for the first 90
consecutive calendar days of employment. The 90 consecutive calendar days include both
days worked and days not worked.
If employees received tips as part of their wages, they must be paid a minimum of $2.13 per
hour and there total wages (wages + tips) must be equal or greater than the standard minimum
wage rate. (Other requirements must be met for an employer to be able to pay the $2.13 wage
rate).
Failure to comply with minimum wage laws can result in monetary penalties and imprisonment
depending on the gravity and willfulness of the violation.
Overtime:
An employer must pay a non-exempt employee a minimum of 1-1/2 times their base wage rate
for all hours worked over 40 in a workweek. There is no federal law limiting the number of
hours an employer can require a non-exempt employee to work so long as they pay overtime.
Like with minimum wage rates, some states have more stringent overtime laws.
To see your state's overtime laws click here.
Child Labor Laws and Minimum Age Requirement
The basic rule is:
- 16 - 17 year olds can work an unlimited number of hours in any occupation not declared
hazardous by the DOL. - 14 - 15 year olds can work, but are significantly restricted in the hours and types of work
they can perform.
Additional restrictions and limitations may apply depending on the situation.
States also have established child labor laws. For more information on State child labor laws
visit Child Labor Laws.
Lunch and Breaks
For federal and state meal, lunch, and break requirements, visit our Meals and Breaks page.
Posting Requirements
To comply with the FLSA, an employer must post a notice in a conspicuous place explaining the
FLSA, including the current minimum wage rate and overtime requirements. A poster that
complies with the FLSA requirement can be downloaded from the DOL.gov. States may have
posting requirements in addtion to the federal requirements. Click here to see your state's
posting requirements.
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| EmploymentLawHandbook.com |
| Your Employment and Labor Law Resource |
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If you do not find the answer to your question through this summaries or links below, feel
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free to contact us with your question. We'll do our best to help you find the answer you are
looking for.
Disclaimer
This site is not intended to constitute legal advice and should not be relied upon as such. Additionally, no
attorney-client relationship has been created by your visiting and reading this site. Please consult a legal
professional before taking any action you believe may result in liability or litigation. Nothing on this site creates
an express or implied contract. While efforts are made to present only accurate and current information, laws
can and do change and interpretations vary among jurisdictions, so all information is presented on an “as-is”
basis. This site is for informational purposes only.
This site is not intended to constitute legal advice and should not be relied upon as such. Additionally, no
attorney-client relationship has been created by your visiting and reading this site. Please consult a legal
professional before taking any action you believe may result in liability or litigation. Nothing on this site creates
an express or implied contract. While efforts are made to present only accurate and current information, laws
can and do change and interpretations vary among jurisdictions, so all information is presented on an “as-is”
basis. This site is for informational purposes only.
