Definition
The Fair Labor Standards Act (FLSA) is a United States federal law introduced in 1938 that establishes minimum wage, overtime pay, recordkeeping, and child labor standards for both full-time and part-time workers in the private sector and in federal, state, and local governments. Its primary purpose is to protect employees by ensuring fair wages, reasonable work hours, and preventing the exploitation of child labor. The FLSA is enforced by the Wage and Hour Division of the U.S. Department of Labor.
Phonetic
The phonetics of the keyword “Fair Labor Standards Act” can be represented as:/feɪr ˈleɪbər ˈstændərdz ækt/ Here is a breakdown of the phonetic notation:- Fair: /feɪr/- Labor: /ˈleɪbər/- Standards: /ˈstændərdz/- Act: /ækt/
Key Takeaways
- The Fair Labor Standards Act (FLSA) is a federal law that establishes standards for minimum wage, overtime pay, child labor, and record-keeping for employees in the United States.
- Under FLSA, non-exempt employees are entitled to receive overtime pay for hours worked beyond 40 in a workweek at a rate not less than one and one-half times their regular rate of pay.
- The act also prohibits the employment of minors below the age of 16 in most non-agricultural industries and regulates the hours that minors aged 14-17 can work. Additionally, it prohibits employers from employing individuals under the age of 18 in jobs that are considered hazardous.
Importance
The Fair Labor Standards Act (FLSA) is a critical piece of legislation in the realms of business and finance due to its role in governing minimum wage, overtime pay, child labor, and recordkeeping for employees in the United States. By establishing these essential labor standards, the FLSA ensures the protection of workers’ rights, safeguards their well-being, and helps maintain their financial stability. Businesses must comply with FLSA provisions when setting employee compensation and work conditions, which in turn fosters an ethical and fair workplace environment while reducing potential labor disputes. Overall, the FLSA plays a crucial part in maintaining a healthy and productive workforce and contributes to a balanced, equitable economy for all.
Explanation
The Fair Labor Standards Act (FLSA) serves a crucial purpose in ensuring that employees within the United States benefit from just, equitable working conditions and remuneration. Enacted in 1938 by President Franklin D. Roosevelt, this legislation primarily functions to establish and uphold minimum wage, overtime pay provisions, and child labor standards for workers within both the public and private sectors. Through fostering reliable minimum labor conditions, FLSA aims to mitigate the detrimental impacts of unfair labor practices that can result in financial inequality and exploitation, enabling employees to maintain a reasonable standard of living and providing a foundation for workplace fairness. In addition to setting the minimum wage and overtime requirements, the Fair Labor Standards Act strives to prevent abusive labor practices by closely regulating child labor and drafting clear protective rules that stipulate the type of work that children can engage in depending on their age. The Act has evolved with time to reflect changing economic conditions, with lawmakers regularly amending the legislation to accommodate for fluctuations in inflation or emerging labor concerns. By maintaining these standards and ensuring that workplaces abide by relevant provisions, the FLSA functions as a pivotal force in supporting a balanced, equitable economy that protects and respects the rights of the American workforce.
Examples
The Fair Labor Standards Act (FLSA) is a United States federal law enacted in 1938 that establishes minimum wage, overtime pay, child labor standards, and recordkeeping requirements for both full-time and part-time workers in the private sector and certain government employees. Here are three real-world examples relating to the FLSA: 1. Minimum wage changes:In July 2009, the FLSA increased the federal minimum wage from $6.55 to $7.25 per hour. This change affected millions of workers across the United States, ensuring they received a higher base pay for their work. Employers were required to pay their workers at least the new minimum wage rate, helping improve the financial situation for low-paid employees. 2. Overtime pay for salary workers:In 2016, the Department of Labor issued an update to the FLSA’s overtime regulations, raising the salary threshold for overtime pay eligibility from $23,660 to $47,476 per year. This change meant that any salaried worker making less than the new threshold would be eligible to receive overtime pay (1.5 times their regular hourly rate) for any hours worked beyond the standard 40-hour workweek. This update aimed to provide fair compensation for employees who put in extra time and effort. 3. Child labor protections:In April 2004, the Department of Labor fined Wal-Mart $135,540 for violating child labor laws under the FLSA. The company allowed young workers to engage in activities prohibited by the act, such as operating dangerous machinery like forklifts or working beyond the allowable hours for minors. This enforcement action demonstrates the FLSA’s role in protecting young workers’ safety and well-being in the workplace.
Frequently Asked Questions(FAQ)
What is the Fair Labor Standards Act (FLSA)?
When was the FLSA enacted?
What is the current national minimum wage under FLSA?
What are the overtime pay regulations under the FLSA?
Are all employees covered by FLSA standards?
How does the FLSA regulate child labor?
How does the FLSA apply to tipped employees?
How can an employee file a complaint if they believe their employer is violating the FLSA?
Are salaried employees protected by the FLSA?
Can states have their own labor laws in addition to the FLSA?
Related Finance Terms
- Minimum Wage
- Overtime Pay
- Child Labor Regulations
- Recordkeeping Requirements
- Exempt Employees
Sources for More Information
