Fair Labor Standards Act (FLSA): Key Provisions and Employer Duties

The Fair Labor Standards Act (FLSA) is a cornerstone of U.S. labor law that establishes nationwide rules on minimum wage, overtime pay, recordkeeping, and child labor. It was enacted in 1938 and is administered by the U.S. Department of Labor’s Wage and Hour Division (WHD).

For the latest updates on overtime rules and salary thresholds, see our new article: FLSA Updates 2025: New Overtime and Salary Threshold Developments

Purpose and Scope

The FLSA covers most employees in the private sector and in federal, state, and local governments. It ensures that covered workers receive a minimum standard of pay and protection under federal law. (Congress.gov)

Minimum Wage

The current federal minimum wage is $7.25 per hour. Some states and cities set higher minimum wages, and employers must pay whichever rate is more favorable to employees. (DOL – Minimum Wage)

Overtime Pay

Covered non-exempt employees must receive overtime pay at a rate of at least one and one-half times their regular rate for hours worked over 40 in a workweek. (DOL – Overtime Pay)

Exemptions

Certain employees are exempt from minimum wage and/or overtime provisions — including bona fide executive, administrative, and professional employees who meet specific salary and duties tests. (29 CFR Part 541)

Recordkeeping

Employers must keep accurate records of wages, hours worked, and other employment data for non-exempt employees. These records must be available for inspection by the Department of Labor. (DOL – Recordkeeping)

Child Labor Rules

The FLSA restricts the employment of minors under age 18 in non-agricultural jobs and prohibits hazardous occupations for youth workers. (DOL – YouthRules!)

Enforcement

The Wage and Hour Division enforces the FLSA through investigations, back-wage recovery, civil penalties, and litigation. Employees may also file private lawsuits for unpaid wages. (DOL – Handy Reference Guide)

State Laws and Interaction

When both federal and state laws apply, the rule that provides the higher pay or greater benefit to the employee prevails. (DOL – State Minimum Wage Laws)

Related update: See our article FLSA Updates 2025 – New Overtime and Salary Threshold Developments for the latest information on rule changes, salary levels, and DOL enforcement.

Summary

The Fair Labor Standards Act remains the foundation of wage-hour protection in the United States. Employers should regularly review job classifications, salary levels, and recordkeeping practices to maintain compliance and avoid penalties.

Official sources:
U.S. Department of Labor – FLSA Overview
Code of Federal Regulations (29 CFR Part 541)
Congress.gov – Fair Labor Standards Act of 1938
FederalRegister.gov

M. Spik

Editor
25 years of experience managing tax, accounting, payroll, and employment-related information portals. Editor of Accounting Portal since 2011.
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