Minimum Wage and Overtime Rules

Wages and the Fair Labor Standards Act (FLSA)

Overview

worker photoThe FLSA establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments. Covered nonexempt workers are entitled to a minimum wage as set by Congress. Overtime pay at a rate not less than one and one-half times the regular rate of pay is required after 40 hours of work in a workweek.

While the FLSA does set the minimum wage for most workers, it does not require any of the following:

New DOL rules issued in May 2016 expand overtime rules. The new rules take effect December 1, 2016. Download this 8-page overview of the rules: General Guidance.  Additional information is available here:

Every employer covered by the Fair Labor Standards Act (FLSA) must keep certain records for each covered, nonexempt worker. There is no required form for the records, but the records must include accurate information about the employee and data about the hours worked and the wages earned. The following is a listing of the basic records that an employer must maintain:

  • Fair Labor Standards Act (FLSA) Minimum Wage: The federal minimum wage is $7.25 per hour ( as of July 24, 2009). Many states also have minimum wage laws. In cases where an employee is subject to both state and federal minimum wage laws, the employee is entitled to the higher minimum wage.
  • Minimum Wage Laws in the States
  • Minimum Wage for Federal Contractors
  • FLSA Overtime: Covered nonexempt employees must receive overtime pay for hours worked over 40 per workweek (any fixed and regularly recurring period of 168 hours — seven consecutive 24-hour periods) at a rate not less than one and one-half times the regular rate of pay. There is no limit on the number of hours employees 16 years or older may work in any workweek. The FLSA does not require overtime pay for work on weekends, holidays, or regular days of rest, unless overtime is worked on such days.
  • Hours Worked (PDF): Hours worked ordinarily include all the time during which an employee is required to be on the employer’s premises, on duty, or at a prescribed workplace.
  • Record-keeping (PDF): Employers must display an official poster outlining the requirements of the FLSA. Employers must also keep employee time and pay records.
  • Child Labor: These provisions are designed to protect the educational opportunities of minors and prohibit their employment in jobs and under conditions detrimental to their health or well-being.

General Guidance

Posters, Tools and Resources

DOL e-tools

  • The Coverage and Employment Status Advisor helps identify which workers are employees covered by the FLSA.
  • The Hours Worked Advisor provides information to help determine which hours spent in work-related activities are considered FLSA “hours worked” and therefore must be paid.
  • The Overtime Security Advisor helps determine which employees are exempt from the FLSA minimum wage and overtime pay requirements under the Part 541 overtime regulations.
  • The Overtime Calculator Advisor computes the amount of overtime pay due in a sample pay period based on information from the user.
  • The Child Labor Rules Advisor answers questions about the FLSA’s youth employment provisions, including at what age young people can work and the jobs they can perform.
  • The Section 14(c) Advisor helps users understand the special minimum wage requirements for workers with disabilities.

PowerPoint Presentations

 

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