What Is The FLSA? (Federal Labor Law)
The Fair Labor Standards Act (FLSA) is a federal law that sets rules for minimum wage, overtime pay, work records, and child labor. It generally requires covered, nonexempt employees to earn at least $7.25 per hour and receive overtime pay after 40 hours in a workweek. State or local laws may give workers stronger protections.
Before you know what the FLSA covers, a pay stub or job offer can feel like a puzzle: Is overtime due? Does a salary mean no overtime? After you learn the basic rules, you can ask more precise questions and check the details that matter. I often see people mistake a job title or pay method for a legal answer. Neither settles the issue on its own.
This guide explains the federal baseline and how to check it. It is general legal information, not advice about a specific claim. Rules can vary by state, locality, job, and current legal developments.
What is the FLSA?
The Fair Labor Standards Act is a federal law that sets key rules for pay and work. It covers minimum wage, overtime, employer recordkeeping, and child labor. The law applies to many workers, but coverage and exemptions depend on the facts. It does not replace stronger state or local protections.
Congress passed the FLSA in 1938. The U.S. Department of Labor’s Wage and Hour Division (WHD) enforces it. The law does not set every workplace rule: for example, it does not generally require employers to provide paid vacation or meal breaks.
The FLSA also does not guarantee that every worker receives overtime. A worker must be covered and nonexempt for the federal overtime rule to apply. That is why the first question is not simply, “Am I paid by the hour?” It is, “How does the law classify this work and this worker?”
Key point: Think of the FLSA as a federal baseline. A state or city may require a higher minimum wage or offer other protections. When rules differ, the rule that gives the worker greater protection may apply, but the details depend on the laws involved.
Who is covered by the FLSA?
FLSA coverage means that the law’s protections apply to a worker or employer under one of the Act’s tests. Coverage may come through an employer’s business activities or through the worker’s own job duties. Not every organization or worker qualifies in the same way, so check the facts before drawing a conclusion.
The Act has two main paths to coverage:
- Enterprise coverage: The employer may be covered as a business or organization. One common test looks at annual business volume and activity, but some types of employers, such as hospitals and schools, are covered under specific rules.
- Individual coverage: A worker may be covered based on their own work in or closely related to interstate commerce. This can include work that connects to trade or communication across state lines.
The federal law generally applies to employees, not automatically to every person who performs work for a business. Whether someone is an employee or an independent contractor depends on the working relationship and relevant law. A contract label alone does not settle the question.
A job can also be covered by state or local wage laws even when a federal rule does not apply. Check both the employer’s location and the worker’s work location. For remote work, the location where work is performed can matter.
What are the FLSA minimum-wage and overtime rules?
For covered workers, the FLSA sets a federal minimum wage of $7.25 per hour. Covered, nonexempt employees generally must receive at least one and one-half times their regular rate for hours worked over 40 in a workweek. State or local rules may set a higher minimum or add protections.
A workweek is a fixed, recurring period of 168 hours, or seven consecutive 24-hour days. It does not have to match the calendar week. An employer may set the start day and time, but generally cannot average hours across two workweeks to avoid overtime.
| Situation | Federal baseline | What to check |
|---|---|---|
| Covered, nonexempt employee works 40 hours | At least the applicable minimum wage for hours worked | Whether state or local minimum wage is higher |
| Covered, nonexempt employee works 45 hours | Overtime generally applies to 5 hours | Regular rate and workweek dates |
| Employee works a weekend or holiday | No federal overtime solely because of the day | Employer policy, contract, or state law |
| Employee earns a salary | Salary alone does not remove overtime rights | Duties, pay basis, applicable salary test, and law |
The regular rate is the rate used to calculate overtime. For an hourly worker, it may include more than the stated hourly wage, such as certain bonuses or other pay. The law has exclusions, so the correct calculation depends on the type of pay received.
For a simple example, if a covered, nonexempt worker’s regular rate is $20 per hour, the federal overtime rate is generally at least $30 per overtime hour. That example assumes the regular rate is correctly calculated and no special rule changes the result.
Federal law does not generally require extra pay just because someone works a weekend or holiday. Extra pay may still be required by state law, a contract, or an employer policy.
What does “exempt” mean under the FLSA?
An exempt employee is not entitled to the FLSA’s overtime rules under a valid exemption. Many common white-collar exemptions involve tests for salary basis, salary level, and job duties. A title such as “manager” or receiving a salary does not, by itself, prove that an exemption applies.
Employers must look at what a worker is paid and what the worker actually does. The duties test considers real job responsibilities, not just a title or a list of tasks copied into a job description. Some jobs have different rules or exemptions, so do not assume all salaried workers are treated alike.
The federal salary-level threshold is subject to regulatory change and litigation. Because the legal status of a threshold can shift, I do not recommend relying on an old online figure. Check current U.S. Department of Labor guidance and any court decisions that affect the rule before making a decision.
| Question | Why it matters |
|---|---|
| Is the worker paid on a salary basis? | Some exemptions require a particular pay basis, subject to exceptions. |
| Does the worker meet the current salary-level test? | The threshold and its legal status can change. |
| Do the actual duties meet the exemption test? | Job title alone is not enough. |
| Does a special occupation rule apply? | Some jobs have distinct exemption rules. |
If an employer calls a worker exempt, ask which exemption it relies on and how the worker’s duties meet it. For a specific dispute, get advice from the WHD or a qualified employment-law professional.
What records and child-labor rules does the FLSA require?
The FLSA requires covered employers to keep certain wage-and-hour records, such as time worked, pay rates, and wages paid. It also limits work hours and occupations for many workers under 18. State child-labor laws may be stricter, so age, job duties, school schedules, and location all matter.
Employers generally must keep records that allow pay and hours to be checked. Workers can help by saving their own schedules, time entries, pay statements, and written messages about hours or pay. These records can make it easier to spot a mismatch between hours worked and wages received.
Federal youth employment rules differ by age and type of work. For example, federal rules restrict the hours and times many 14- and 15-year-olds may work in nonagricultural jobs. Workers under 18 are generally barred from federally identified hazardous nonagricultural occupations. Agricultural work has separate rules.
Do not rely on a general summary to decide whether a young person can perform a specific task. Check current federal rules and the state’s child-labor requirements. A state may set a higher minimum age, stricter hour limits, or additional limits on job duties.
How can you apply the FLSA to a real work situation?
A useful FLSA review starts with facts, not labels. Identify who employs the worker, what work they do, where they work, how they are paid, and how many hours fall within each workweek. Then check coverage, exemptions, and state or local law before deciding what pay is due.
Consider these common scenarios. They are examples for learning, not findings about any real employer.
| Scenario | First questions to ask | Federal issue to check |
|---|---|---|
| A retail worker reports 46 hours in one workweek | What hours were actually worked? What is the workweek boundary? | Coverage, nonexempt status, and overtime calculation |
| A salaried assistant is told the role is “exempt” | What duties does the worker perform? What pay tests apply now? | Whether a specific exemption is valid |
| A teen receives a schedule for evening shifts | How old is the worker? What job and location? | Federal hour and occupation limits, plus state rules |
| A worker’s paycheck seems short | Are all hours and relevant pay included? What records exist? | Minimum wage, overtime, and recordkeeping |
A practical review follows four steps:
- Write down the facts. Record the job duties, pay arrangement, work location, schedule, hours, and employer.
- Check coverage and classification. Do not infer employee status or exemption from a contract, title, or salary alone.
- Calculate by workweek. Compare hours and pay within each fixed seven-day workweek. Do not combine weeks.
- Compare laws and save records. Check federal, state, and local rules. Keep schedules, time records, pay statements, and relevant policies.
For coursework, cite the law or current agency guidance and state the date you checked it. For a workplace concern, contact the WHD or consult a qualified employment-law professional. The correct answer often turns on details that a short online definition cannot resolve.
Frequently asked questions about the FLSA
These quick answers cover common questions about the federal wage-and-hour law. They describe general federal rules, not every exception or state requirement. If a rule affects your pay or a hiring decision, confirm the current details with the U.S. Department of Labor and the relevant state or local agency.
What does FLSA stand for?
FLSA stands for the Fair Labor Standards Act, a federal law covering minimum wage, overtime, records, and child labor.
What is the federal minimum wage under the FLSA?
The federal minimum wage is $7.25 per hour. A higher state or local minimum may apply.
Does the FLSA require overtime after 40 hours?
Covered, nonexempt employees generally receive at least one and one-half times their regular rate for hours worked over 40 in a workweek.
Does working on a weekend automatically mean overtime?
No. Federal overtime is generally based on hours over 40 in a workweek, not on whether the hours fall on a weekend or holiday.
Does being paid a salary mean I am exempt?
No. Salary alone does not establish an exemption. The applicable pay and duties tests must be met.
Does a job title decide whether a worker is exempt?
No. The worker’s actual duties and applicable pay tests matter. A title such as “manager” is not enough.
Does the FLSA cover every worker?
No. Coverage depends on statutory tests, and some exemptions apply. State or local law may cover a worker even when a federal rule does not.
Can state law offer more than the FLSA?
Yes. States and localities may set higher minimum wages or provide stronger protections. Check the law where the work is performed.
What records should I save if my pay seems wrong?
Keep schedules, time records, pay statements, and messages about hours or pay. These details can help you explain the issue.
Where can I check current FLSA rules?
Start with the U.S. Department of Labor’s Wage and Hour Division. For a specific claim, consider contacting the agency or a qualified employment-law professional.
The most reliable way to understand the FLSA is to treat it as a starting point, not the whole answer. Check coverage, actual duties, hours, pay, and current state and local rules. If the facts are disputed or a significant amount of pay is involved, seek help before relying on a general summary.
(This article was written by one of our staff writers, Nathan Sterling. Visit our Meet the Team page.)
