Fair Labor Standards Act

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The Fair Labor Standards Act (FLSA) is a federal law signed by President Franklin D. Roosevelt on June 14, 1938, that established minimum wage, overtime, child labor standards, and recordkeeping requirements. The legislation covers all federal, state, and local government employees and private sector employees.

Background

The Fair Labor Standards Act was established by Congress in 1938 in an effort to maintain employees' standard of living and to eliminate what proponents of the bill viewed as detrimental labor conditions such as long hours, low wages, and exploited child laborers. Members of Congress at the time argued that labor conditions were negatively impacting individuals' health and well-being. Labor conditions were also affecting the flow of commerce and leading to an increase in labor disputes. Congress established new labor standards through the FLSA to eliminate unfair working conditions, which would also properly regulate commerce.

President Franklin D. Roosevelt advocated for the bill, arguing that "a self-supporting and self-respecting democracy can plead no justification for the existence of child labor, no economic reason for chiseling worker's wages or stretching workers' hours."

Provisions

The Fair Labor Standards Act established minimum wage, overtime, child labor standards, and recordkeeping requirements.

Minimum wage

The Fair Labor Standards Act established a minimum wage for all government and private sector workers. An amendment to the act in 1989 extended the minimum wage requirement to small retail businesses.

The minimum wage rate has been raised repeatedly since the act was first signed into law in 1938. The federal minimum wage as of July 2022 was $7.25 per hour, which was set under an amendment to the Fair Labor Standards Act on July 24, 2009. A complete list of the previous minimum wage rates under the FLSA can be found here.

States' minimum wage rates vary; certain states maintain minimum wage rates that are higher than or equivalent to the federal rate, while other states maintain a minimum wage rate that is lower than the federal rate for employees that the Fair Labor Standards Act does not cover, such as employees in executive, administrative, professional, computer, and outside sales positions. As of July 1, 2022, the following state minimum wage rate laws were in effect:

• Thirty states have a minimum wage rate that is higher than the federal rate established by the FLSA (Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, New York, Ohio, Oregon, Rhode Island, South Dakota, Vermont, Virginia, Washington, and West Virginia)
• Thirteen states have a minimum wage rate that is equivalent to the federal rate established by the FLSA (Idaho, Indiana, Iowa, Kansas, Kentucky, New Hampshire, North Carolina, North Dakota, Oklahoma, Pennsylvania, Texas, Utah, and Wisconsin)
• Two states have a minimum wage rate that is lower than the federal rate established by the FLSA (Georgia and Wyoming)
• Five states do not have a state minimum wage law (Alabama, Louisiana, Mississippi, South Carolina, and Tennessee)

States that do not have a minimum wage law or have a minimum wage rate lower than the federal mandate must adhere to the federal minimum wage for employers subject to the Fair Labor Standards Act.

Overtime

The Fair Labor Standards Act established overtime regulations for all non-exempt employees. The act mandated that employees must receive overtime pay at a rate of time and one-half their pay for hours that exceed a 40-hour workweek. The workweek is defined by the U.S. Department of Labor as including, "all time during which an employee is necessarily required to be on the employer's premises, on duty or at a prescribed work place."

Child labor standards

Child labor laws were established by the Fair Labor Standards Act to regulate the work of children to protect their well-being. The U.S. Department of Labor restricts the number of hours an individual under the age of sixteen can work and prohibits children from working in jobs that the law deems hazardous. The FLSA also mandates that children under the age of 18 must be paid at least the federal minimum wage.

States can also set regulations for employing children under the age of 18. These regulations can limit the types of jobs that minors can maintain, establish minimum age requirements for employees, or require work permits, among other requirements. A complete list of state child labor laws can be viewed here.

Recordkeeping

The Fair Labor Standards Act established recordkeeping requirements for employers covered by the FLSA. The act requires employers to maintain the following records on all non-exempt employees:

• Full name
• Social security number
• Address
• Birth date for employees under the age of 19
• Sex
• Occupation
• Hours worked each day/week
• Employees' start day/time each week
• The basis on which wages are paid
• Hourly pay rate
• Daily/weekly straight-time earnings
• Total overtime earnings
• All additions or deductions from wages
• Total wages paid each pay period
• Date of payment

Employers are required to retain records relating to payroll, collective bargaining agreements, sales, and purchases for three years. Records relating to wages, such as time cards, work schedules, additions, and deductions must be retained for two years.

Recent news

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Fair Labor Standards Act News Feed

See also

• Federalism
• U.S. Department of Labor

External links

• Full text of the law
• U.S. Department of Labor summary