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What is the FLSA (Fair Labor Standards Act)?

The FLSA establishes federal standards for minimum wage, overtime pay, record-keeping, and youth employment in the US.

Minimum wage: For hourly employees, the minimum wage is $7.25. For tipped employees, employers must pay a direct wage of at least $2.13 per hour if they claim a tip credit. Some states have set a higher minimum wage (e.g., $10.50 in Washington DC) with which local employers must comply.

Overtime pay: Nonexempt employees must receive overtime pay for hours worked over 40 per workweek, and overtime pay must be at least one and one-half times the regular rate of pay. For employees over 16 years of age, there is no limit on the number of hours employees may work in any workweek. The FLSA does not require overtime pay for work on weekends, holidays, or regular days off (unless overtime is worked on these days).

Notifications and recordkeeping: Employers must display an official poster outlining the requirements of the FLSA. Employers must also keep employee time and pay records.

Child labor: Employers must abide by specific standards for minors, which vary based on industry and time of year according to "school in session" provisions.

The FLSA exempts some employees from its overtime pay and minimum wage provisions. The most common exemption is for salaried "white collar" employees.

In 2015, the FLSA was amended to raise the minimum salary threshold for overtime exemption, and eliminate of the “primary duty” criteria used to determine whether an employee qualifies under a white collar exemption. The result is that more employees are now entitled to overtime pay.

Want help managing FLSA Overtime Regulations?

See how ADP helps companies understand proposed FLSA changes and their impact on business. Visit ADP Time and Labor Services >