Overview

The Fair Labor Standards Act (FLSA) is a foundational federal law enacted in 1938 as part of the New Deal era. It establishes national standards for wages and hours worked by employees in the United States and is often called the Wages and Hours Bill. The statute sets baseline protections; many employers and workers consult the original law and Department of Labor guidance for interpretation.

Key provisions

  • Minimum wage: a federal minimum that serves as a floor beneath state rates.
  • Overtime pay: generally requires premium pay (typically one and one-half times regular pay) for hours worked over 40 in a workweek for nonexempt employees.
  • Child labor: prohibits oppressive child labor and limits hours and types of work for minors.
  • Recordkeeping: requires employers to keep accurate payroll and time records for covered employees.

Coverage and common exemptions

The FLSA covers a broad range of workers whose employment affects interstate commerce or who work for enterprises that meet certain economic thresholds. However, not all workers are treated the same: the law distinguishes between nonexempt employees (eligible for minimum wage and overtime) and exempt employees (not eligible) based on duties and pay structure. Typical exempt categories include executives, administrative and professional employees, outside sales workers, and certain computer professionals. Special rules also apply to tipped employees and to independent contractors, who are generally not covered as employees.

History and development

Passed in 1938 under President Franklin D. Roosevelt, the FLSA has been amended and interpreted over decades to address evolving labor markets. Major developments include amendments to address equal pay and to refine exemptions and enforcement mechanisms. The Equal Pay Act of 1963, for example, was enacted as an amendment to this body of law to target wage discrimination based on sex.

Enforcement and impact

Enforcement is principally carried out by the Wage and Hour Division of the U.S. Department of Labor (Wage and Hour Division), which investigates complaints, recovers back wages, and may assess penalties. The law also allows private lawsuits in many cases. Employers found in violation can be required to pay unpaid wages and, in some circumstances, liquidated damages.

Notable distinctions and contemporary issues

The FLSA sets federal minimum standards, but state and local laws may provide greater protections, such as higher minimum wages or different overtime rules. Classification disputes—whether a worker is an employee or an independent contractor, or whether an employee meets an exemption—are frequent sources of litigation. For authoritative text and further regulatory guidance, readers often consult the statutory language and Department of Labor materials: statutory text and resources.