Fair Labor Standards Act

Definition

The Fair Labor Standards Act (FLSA) is a federal law enacted in 1938 that establishes minimum wage, overtime pay, recordkeeping, and youth employment standards in the United States. This legislation was a significant step towards protecting workers' rights and ensuring fair compensation for labor. It impacts various economic systems by setting a foundation for labor relations and influencing how businesses operate in terms of employee treatment and compensation.

5 Must Know Facts For Your Next Test

1. The Fair Labor Standards Act was signed into law by President Franklin D. Roosevelt on June 25, 1938, as part of the New Deal legislation.
2. The initial minimum wage set by the FLSA was $0.25 per hour, which has since increased over the decades due to inflation and economic changes.
3. The Act applies to most private sector employers as well as federal, state, and local government employees, creating broad coverage across various industries.
4. FLSA prohibits oppressive child labor, establishing minimum age requirements for employment and regulating working hours for minors.
5. The law has undergone several amendments since its enactment, addressing issues such as wage disparities and expanding coverage to include more workers.

Review Questions

• How does the Fair Labor Standards Act establish a framework for worker compensation and rights in the U.S. economy?
  • The Fair Labor Standards Act creates a framework for worker compensation by setting standards for minimum wage and overtime pay. By requiring employers to adhere to these guidelines, the FLSA helps ensure that workers receive fair compensation for their labor. This law not only protects employees from exploitation but also shapes business practices across various sectors, promoting ethical treatment of workers within the economic system.
• Discuss the implications of the Fair Labor Standards Act on youth employment and how it addresses child labor practices.
  • The Fair Labor Standards Act has significant implications for youth employment by regulating child labor practices to protect minors from exploitation and harmful work conditions. The FLSA sets minimum age requirements for various jobs and limits the hours that minors can work, ensuring that their education and well-being are prioritized. This protective framework helps create safer working environments for young individuals while allowing them to gain valuable experience without compromising their development.
• Evaluate the long-term effects of the Fair Labor Standards Act on modern labor relations and workplace standards in the U.S.
  • The long-term effects of the Fair Labor Standards Act on modern labor relations are profound, as it laid the groundwork for contemporary workplace standards regarding compensation and worker rights. The FLSA has fostered an environment where fair pay practices are expected, influencing labor negotiations and collective bargaining processes. Additionally, its ongoing amendments reflect society's changing views on fairness and equality in the workplace, highlighting its role in shaping labor policy discussions and reforms in response to economic shifts.

Related terms

Minimum Wage: The lowest hourly wage that employers can legally pay their workers, as mandated by the Fair Labor Standards Act.

Overtime Pay: Additional pay that employees earn for working more than 40 hours in a workweek, typically at a rate of one and a half times their regular pay.

Child Labor: The practice of employing children in a manner that is harmful to their health or education, which the FLSA aims to regulate by setting age limits and working conditions.