Fair Labor Standards Act (FLSA)

Fair Labor Standards Act (FLSA)

The Fair Labor Standards Act is the foundational federal statute protecting workers from exploitation and establishing minimum labor standards that apply to most private sector employees.

Key Provisions

Minimum Wage

Employers must pay employees at least the federal minimum wage (currently $7.25 per hour, though many states have higher minimums).

Overtime Pay

Employees covered by the FLSA must receive overtime pay (at least time-and-a-half) for all hours worked over 40 per week. The overtime rules have specific exemptions for certain positions.

Record-Keeping

Employers must maintain accurate records of:

• Hours worked by each employee
• Wages paid
• Deductions made
• Other payroll information

Child Labor Restrictions

The FLSA restricts employment of minors, including:

• Minimum age requirements for employment
• Hours restrictions for minors
• Prohibited occupations for minors
• Work permit requirements in some states

Exempt and Non-Exempt Employees

Non-Exempt Employees

Most workers are entitled to minimum wage and overtime pay. This includes hourly workers and some salaried employees.

Exempt Employees

Certain employees may be exempt from minimum wage and overtime requirements:

• Executive, administrative, and professional employees (with specific salary and duty tests)
• Certain outside salespeople
• Some computer professionals
• Employees in specific industries

Common FLSA Violations

Corporate misconduct involving wage and hour issues includes:

• Misclassifying employees as exempt when they should be non-exempt
• Failing to pay overtime when required
• Off-the-clock work
• Improper deductions from pay
• Failing to maintain accurate time records
• Paying below minimum wage
• Retaliating against employees for asserting wage rights

Enforcement and Remedies

Department of Labor

The U.S. Department of Labor, through the Wage and Hour Division, enforces the FLSA:

• Investigators can conduct workplace inspections
• The DOL can assess penalties for violations
• Employees can file complaints with the DOL

Lawsuits

Employees can sue employers for:

• Unpaid minimum wage
• Unpaid overtime
• Liquidated damages (double damages in many cases)
• Attorney’s fees and costs
• Injunctive relief

Statute of Limitations

Employees can recover back wages for:

• 2 years of violations (3 years if willful violation)

Amendments and Updates

The FLSA has been amended numerous times since its 1938 enactment to address:

• Inflation and increases to minimum wage
• Changing definitions of exempt employees
• New industries and employment arrangements
• Work-life balance protections
• Equal Pay Act amendments
• ADA and other anti-discrimination amendments

Relevance to Corporate Misconduct Investigation

The FLSA is critical for investigating corporate misconduct involving:

• Wage theft through misclassification
• Unauthorized deductions
• Unpaid overtime
• Off-the-clock work requirements
• Inadequate record-keeping

Understanding FLSA rights is essential for workers investigating potential wage and hour abuse by their employers.