Fair Labor Standards Act

Definition

The Fair Labor Standards Act (FLSA) is a federal law enacted in 1938 that establishes minimum wage, overtime pay eligibility, recordkeeping, and youth employment standards for workers in the United States. The FLSA aims to protect workers' rights by ensuring they are fairly compensated for their labor, particularly in terms of hours worked and wages earned, thus laying a foundation for labor rights and workplace fairness.

5 Must Know Facts For Your Next Test

1. The FLSA set the first federal minimum wage at $0.25 per hour when it was enacted in 1938.
2. The act applies to employees engaged in interstate commerce, as well as to businesses with an annual gross volume of sales of $500,000 or more.
3. The FLSA requires covered employers to pay non-exempt employees at least the minimum wage and overtime for hours worked beyond 40 in a workweek.
4. Certain professions, such as those in agriculture and some small businesses, may be exempt from FLSA provisions.
5. Amendments to the FLSA over the years have raised the minimum wage multiple times and expanded coverage to include more workers.

Review Questions

• How does the Fair Labor Standards Act contribute to protecting workers' rights and ensuring fair compensation?
  • The Fair Labor Standards Act protects workers' rights by establishing a minimum wage and requiring overtime pay for non-exempt employees who work over 40 hours in a week. By setting these standards, the FLSA ensures that workers receive fair compensation for their labor, which helps prevent exploitation and promotes economic stability. This act also serves as a basis for additional labor regulations that further enhance workers' rights and workplace fairness.
• Discuss the implications of the Fair Labor Standards Act on businesses, especially regarding wage compliance and employee classification.
  • The Fair Labor Standards Act requires businesses to comply with regulations regarding minimum wage and overtime pay, impacting their operational costs and payroll processes. Companies must accurately classify employees as exempt or non-exempt based on their job duties and salary levels to avoid legal repercussions. Failure to comply can result in significant penalties, highlighting the need for businesses to stay informed about labor laws and ensure proper compliance practices.
• Evaluate how changes in the Fair Labor Standards Act reflect broader societal attitudes towards labor rights and economic equity.
  • Changes in the Fair Labor Standards Act over the decades, such as increases in minimum wage and expansions of coverage to more workers, demonstrate a growing recognition of the importance of labor rights and economic equity. These adjustments reflect shifting societal attitudes that prioritize fair compensation, worker protections, and addressing income inequality. As movements advocating for living wages gain momentum, the ongoing evolution of the FLSA illustrates how legislative frameworks can adapt to meet contemporary economic challenges and social justice goals.

Related terms

Minimum Wage: The lowest legal hourly pay that employers can pay their workers, as established by federal or state law.

Overtime Pay: Additional pay that employees earn for working more than 40 hours in a workweek, typically calculated at 1.5 times their regular rate of pay.

Child Labor Laws: Regulations that restrict the employment of minors in various industries to ensure their safety and well-being while promoting education.