Fair Labor Standards Act

Definition

The Fair Labor Standards Act (FLSA) is a United States federal law enacted in 1938 that establishes standards for minimum wage, overtime pay, and child labor. This act marked a significant shift in labor rights, addressing the exploitation of workers and laying the groundwork for ethical labor practices in the business world.

5 Must Know Facts For Your Next Test

1. The FLSA was signed into law by President Franklin D. Roosevelt as part of the New Deal, aiming to improve working conditions during the Great Depression.
2. The act set the federal minimum wage initially at $0.25 per hour, which has been adjusted multiple times to reflect inflation and cost of living changes.
3. The FLSA applies to both private sector and public sector employees, affecting millions of workers across various industries in the United States.
4. Provisions in the FLSA prohibit oppressive child labor, limiting the hours and types of work that minors can engage in to protect their health and well-being.
5. Enforcement of the FLSA is handled by the Wage and Hour Division of the U.S. Department of Labor, which investigates complaints and ensures compliance.

Review Questions

• How did the Fair Labor Standards Act change the landscape of labor rights in the United States?
  • The Fair Labor Standards Act fundamentally transformed labor rights by establishing regulations for minimum wage, overtime pay, and child labor protections. By setting a baseline for wages and working conditions, it aimed to reduce exploitation and ensure fair treatment for workers. This shift not only improved individual livelihoods but also influenced business practices by encouraging more responsible corporate behavior towards employee welfare.
• In what ways do minimum wage and overtime provisions of the Fair Labor Standards Act impact businesses today?
  • Minimum wage and overtime provisions under the Fair Labor Standards Act compel businesses to comply with federal standards, affecting their payroll strategies and overall operational costs. Employers must carefully manage employee hours to avoid exceeding thresholds that would trigger overtime payments. This regulation not only helps protect workers' rights but also encourages companies to find innovative ways to maximize productivity while adhering to ethical labor practices.
• Evaluate the long-term implications of the Fair Labor Standards Act on business ethics and corporate social responsibility in modern America.
  • The long-term implications of the Fair Labor Standards Act have significantly shaped business ethics and corporate social responsibility in modern America. By setting fundamental standards for wages and working conditions, it has fostered a culture where companies are increasingly held accountable for their treatment of employees. As consumers become more aware and concerned about labor practices, businesses are compelled to adopt ethical policies that promote fair treatment, driving a shift toward responsible practices that align with societal values.

Related terms

Minimum Wage: The lowest legal wage that can be paid to workers, established by the Fair Labor Standards Act to ensure a basic standard of living.

Overtime Pay: Compensation paid to employees who work more than 40 hours in a workweek, as mandated by the Fair Labor Standards Act.

Child Labor Laws: Regulations that restrict the employment of minors in order to protect their rights and ensure their education, heavily influenced by the Fair Labor Standards Act.