Definition
A federal law enacted in 1938 that establishes minimum wage, overtime pay, recordkeeping, and youth employment standards for employees in the private sector and in federal, state, and local governments.
UK Context
Best Practices
- Conduct annual audits of exempt vs non-exempt classifications to ensure compliance with current salary thresholds
- Use time-tracking software for all non-exempt employees to maintain accurate records of hours worked
- Train managers on FLSA basics including overtime rules, meal break requirements, and prohibited off-the-clock work
- Apply the stricter of federal or state wage law when they differ
Frequently Asked Questions
What is the current federal minimum wage under the FLSA?
The federal minimum wage is $7.25 per hour, unchanged since 2009. However, 30+ states and many cities have set higher minimums. Employers must pay whichever rate is higher — federal, state, or local.
Who is exempt from FLSA overtime requirements?
Employees in bona fide executive, administrative, professional, computer, or outside sales roles who meet both the duties test and the salary threshold are exempt. Simply paying someone a salary does not make them exempt — the job duties must qualify.
What are the penalties for FLSA violations?
Employers may owe back wages plus an equal amount in liquidated damages. Willful violations can result in criminal prosecution with fines up to $10,000 and imprisonment. The DOL can also assess civil money penalties per violation.