Fair Labor Standards Act (FLSA)
Definition
A federal law that sets minimum wage, overtime pay, and recordkeeping standards.
What is the FLSA?
The FLSA governs wage and hour rules in the U.S., including minimum wage, overtime eligibility, recordkeeping, and child labor standards. It applies to both full-time and part-time workers in the private sector and in federal, state, and local governments.
Why is the FLSA Important for Employers?
- FLSA violations are one of the most common reasons for DOL audits and lawsuits. Employers must:
- Properly classify employees as exempt or non-exempt
- Pay overtime correctly
- Maintain accurate time and pay records
FAQs
Who is exempt under the FLSA?
Employees who meet specific criteria for salary level, salary basis, and job duties (e.g., executive, administrative, or professional roles) may be exempt from overtime pay requirements.
Can salaried employees receive overtime?
Yes. Being salaried does not automatically exempt an employee from overtime. Job duties and salary thresholds must also meet exemption criteria.
What happens if an employer violates the FLSA?
Noncompliance may result in obligations such as back wage payments, liquidated damages, and civil fines. In willful cases, more serious legal consequences may apply.
How ExtensisHR Can Help
We help clients comply with FLSA by:
- Classifying employees accurately
- Automating time tracking and payroll
- Reviewing pay policies and job descriptions
- Supporting FLSA audits and dispute resolution