Omar Bennett
The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, record-keeping, and child labor standards for employees in the private sector and in federal, state, and local governments. The FLSA has been amended several times to expand its coverage and adjust the minimum wage to reflect inflation. The US Constitution's Tenth Amendment grants governing authority to state and local governments, but federal initiatives like the FLSA and OSHA have been seen to erode this independence by controlling the relationship between these governments and their employees. The application of the FLSA to state and local governments has been a subject of debate, with some arguing for its repeal in the public sector due to the inapplicability of certain tests and the continued exemption of these governments from OSHA.
| Characteristics | Values |
|---|---|
| Established by | U.S. Department of Labor |
| Administered and enforced by | Wage and Hour Division (WHD) of the U.S. Department of Labor (DOL) |
| Enforced by for employees of other Executive Branch agencies | U.S. Office of Personnel Management |
| Enforced by for covered employees of the Legislative Branch | U.S. Congress |
| Applicability | Private sector, Federal, State, and local governments |
| Applicability in terms of employees | Full-time and part-time workers |
| Applicability in terms of age | Workers aged 16 and above |
| Applicability in terms of industry | Transportation, public utilities, government employment, etc. |
| Applicability in terms of enterprise | Enterprises with revenue greater than $500,000 per year |
| Applicability in terms of interstate commerce | Companies that regularly use the U.S. mail, telephones, or telegraph for interstate communication |
| Applicability in terms of job type | Domestic service workers (housekeepers, cooks, full-time babysitters), employees of hospitals, educational institutions, and public agencies |
| Applicability in terms of work activities | Activities that benefit the employer |
| Inapplicability | Independent contractors, volunteers, seasonal employees, outside salespeople |
| Provisions | Minimum wage, overtime pay, recordkeeping, child labor standards, youth employment standards, protection of educational opportunities of minors |
| Non-provisions | Wage payment or collection procedures for an employee's usual or promised wages or commissions |
| Non-provisions | Limit on the number of hours employees may work in a week |
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What You'll Learn
The FLSA establishes minimum wage, overtime pay, and record-keeping standards
The Fair Labor Standards Act (FLSA) is a federal law that establishes minimum wage, overtime pay, record-keeping, and youth employment standards for full-time and part-time workers in the private sector and federal, state, and local governments. The FLSA ensures that covered, non-exempt workers receive a minimum wage of at least $7.25 per hour, which came into effect on July 24, 2009. This federal minimum wage applies across the United States, although many states have also implemented their own minimum wage laws, and employees are entitled to the higher of the two rates if both federal and state laws apply.
The FLSA also guarantees overtime pay for nonexempt employees, which is compensation at a rate of no less than one and one-half times the regular rate of pay for hours worked beyond 40 in a single workweek. Overtime-eligible employees must be compensated with either overtime pay or compensatory time for these excess hours. It's important to note that the FLSA does not require overtime pay for work on weekends, holidays, or regular days of rest unless overtime is worked on those days. Additionally, the act provides exemptions from minimum wage and overtime pay requirements for specific positions, such as executive, administrative, professional, computer, and outside sales roles, as outlined in Section 13(a)(1) of the FLSA. These exemptions are based on both job duties and salary requirements.
The record-keeping standards set by the FLSA include the requirement for employers to display an official poster outlining the act's requirements. Employers must also maintain records of employee time and pay. The FLSA defines “hours worked” as time during which an employee is required to be on the employer's premises, on duty, or at a prescribed workplace. This includes preliminary work activities controlled by the employer and performed for the employer's benefit, as clarified by the US Supreme Court in the 1946 Anderson v. Mt. Clemens Pottery Co. case.
The FLSA's youth employment provisions, also known as child labor standards, are designed to protect the educational opportunities of minors and prohibit their employment in jobs or conditions detrimental to their health and well-being. These provisions include restrictions on work hours for minors under 16 and lists of hazardous occupations for both farm and non-farm jobs. Additionally, the FLSA provides special minimum wage requirements for workers with disabilities.
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It affects federal, state, and local governments
The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in federal, state, and local governments. The Wage and Hour Division (WHD) of the U.S. Department of Labor (DOL) administers and enforces the FLSA with respect to private employment, state and local government employment, and federal employees of the Library of Congress, U.S. Postal Service, Postal Rate Commission, and the Tennessee Valley Authority.
The FLSA is enforced by the U.S. Office of Personnel Management for employees of other Executive Branch agencies and by the U.S. Congress for covered employees of the Legislative Branch. Special rules apply to state and local government employment involving fire protection and law enforcement activities, volunteer services, and compensatory time off instead of cash overtime pay. Law enforcement, fire protection, and emergency response personnel and employees engaged in seasonal activities may accrue up to 480 hours of comp time, while all other state and local government employees may accrue up to 240 hours.
There are also specific provisions for youth employment. The 1996 Amendments to the FLSA allow employers to pay a youth minimum wage of no less than $4.25 an hour to employees under 20 years of age during their first 90 consecutive calendar days of employment. The FLSA child labor 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. These provisions include restrictions on hours of work for minors under 16 and lists of hazardous occupations that are too dangerous for minors.
The FLSA's impact on state and local governments has been a source of contention, with some arguing that it infringes on the governing authority of states and localities. The Government Finance Officers Association (GFOA), for example, has urged the repeal of the FLSA's applicability to the public sector due to the inapplicability of certain tests and the continued exemption of state and local governments from the purview of OSHA. The U.S. Advisory Commission on Intergovernmental Relations (ACIR) has also recommended repealing the provisions of the FLSA that extend coverage to state and local governments, citing the potential strain on government budgets and the intrusiveness of federal law into matters exclusively within the jurisdiction of state and local governments.
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The FLSA covers employees engaged in interstate commerce
The Fair Labor Standards Act (FLSA) is a federal law that establishes minimum wage, overtime pay, record-keeping, and youth employment standards affecting employees in the private sector and federal, state, and local governments. The FLSA covers employees engaged in interstate commerce, which is interpreted broadly to include most work. This includes employees who work in communications or transportation, regularly use mail, telephone, or telegraph for interstate communication, handle records of interstate transactions, or handle, ship, or receive goods moving in interstate commerce. Even the use of company telephones or computers for interstate business calls or orders can subject an employer to the FLSA.
The 1961 amendment to the FLSA introduced enterprise coverage, which applies when a business is involved in interstate commerce and has an annual gross volume of sales or business of at least $500,000. This amendment also specified automatic coverage for schools, hospitals, nursing homes, and other residential care facilities. Under enterprise coverage, once an employer is covered, all of its employees are covered by the FLSA, even if they are not directly engaged in commerce or the production of goods for commerce.
Employees of firms not covered under the FLSA may still be subject to its provisions if they are individually engaged in interstate commerce or the production of goods for interstate commerce, or in closely related processes or occupations essential to such production. This includes employees who work for independent employers contracting with firms engaged in interstate commerce or producing goods for interstate commerce.
The FLSA provides protections for employees, such as prohibiting discrimination or discharge for filing complaints or providing information, and allowing employees to seek relief through reinstatement, payment of lost wages, and damages if adverse action is taken against them for engaging in protected activity. The FLSA also sets restrictions on child labor to protect the educational opportunities of minors and prohibit their employment in detrimental jobs or conditions.
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It includes youth employment and child labor provisions
The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments. The youth employment provisions of the FLSA were enacted to ensure that when young people work, the work does not jeopardize their health, well-being, or educational opportunities.
The FLSA and the youth employment regulations establish both hours and occupational standards for young people. Children of any age are generally permitted to work for businesses entirely owned by their parents, except that those under 16 may not be employed in mining or manufacturing, and no one under 18 may be employed in any occupation the Secretary of Labor has declared to be hazardous. Once a young person reaches 18 years of age, they are no longer subject to the Federal youth employment provisions. The basic minimum age for employment is 16, and 16- and 17-year-olds may be employed for unlimited hours in any occupation other than those declared hazardous by the Secretary of Labor.
Young people aged 14 and 15 may be employed outside school hours in a variety of non-manufacturing and non-hazardous jobs for limited periods of time and under specified conditions. For example, they may work in non-hazardous jobs on farms that also employ their parents or with written parental consent. In addition, there are some exemptions from the prohibitions: 14- and 15-year-old student learners enrolled in vocational agricultural programs are exempt from certain hazardous occupations when certain requirements are met. Minors aged 14 and 15 who hold certificates of completion of training under a 4-H or vocational agriculture training program may work outside school hours on certain equipment for which they have been trained.
Section 13(c)(7) of the FLSA permits the employment of certain minors between the ages of 14 and 18 inside and outside of places of business where machinery is used to process wood products. This exemption applies only to a minor who is exempt from compulsory school attendance beyond the eighth grade, either by statute or judicial order, and is supervised in the workplace by an adult relative or adult member of the same religious sect or division as the minor.
The FLSA prohibits the shipment in interstate commerce of goods that were produced in violation of the Act's minimum wage, overtime, or youth employment provisions. The Department of Labor is authorized to seek a court order to prevent the shipment of such goods, and employers who have willfully violated the law may be subject to criminal penalties, including fines and imprisonment. An employer that violates the youth employment provisions may be subject to civil money penalties (CMPs). The amount of the CMP assessment depends upon the application of statutory and regulatory factors to the specific circumstances of the case. As a general matter, child labor CMP assessments will be higher if the violation contributed to the injury or death of the youth involved.
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The FLSA impacts public sector independence
The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, record-keeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments. The FLSA also provides protections for child labor and employees who have filed complaints or provided information.
The FLSA's impact on public sector independence is a contentious issue. The US Constitution's Tenth Amendment reserves powers to the states that are not delegated to the federal government. The FLSA's applicability to state and local governments has been questioned by some, who argue that it infringes on state and local government authority over employment policies for their employees.
The San Antonio Metropolitan Transit Authority case addressed the application of the FLSA to state and local governments, concluding that the law did apply to governments. This decision and the subsequent application of FLSA regulations to the public sector have led to conflicts with public accountability statutes and administrative duties, resulting in court cases where high-level public sector employees have been awarded settlements or retroactive overtime pay.
The US Advisory Commission on Intergovernmental Relations (ACIR) and the Government Finance Officers Association (GFOA) have recommended repealing the provisions of the FLSA that extend coverage to state and local governments, citing concerns about the intrusiveness of federal law into matters exclusively within the jurisdiction of state and local governments. They argue that public accountability and collective bargaining powers of employee unions provide adequate protection for workers.
The FLSA's impact on public sector independence is a complex issue, with arguments for both the necessity of federal regulations to protect workers and the importance of respecting state and local government authority. The FLSA has led to increased oversight of employment practices in the public sector, potentially impacting the independence of state and local governments to set their own policies.
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Frequently asked questions
The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and federal, state, and local governments.
The FLSA affects workers in the United States by setting a minimum wage, guaranteeing overtime pay for certain jobs, and establishing recordkeeping and child labor standards. It also provides protections for tipped employees and domestic service workers, such as housekeepers and cooks.
Yes, independent contractors and volunteers are not considered "employees" under the FLSA and are therefore exempt. Additionally, certain industries, such as transportation and public utilities, may be governed by specific laws and regulations that detail worker protections.
The FLSA has been amended several times since its inception in 1938. Notable changes include the addition of enterprise coverage in 1961, the Portal-to-Portal Act of 1947 (which clarified what constitutes "hours worked"), and adjustments to the minimum wage to reflect inflation.
The US Constitution, specifically the Tenth Amendment, grants governing authority to state and local governments, allowing them to manage their employees' relationships. However, federal initiatives like the FLSA and OSHA have been seen as eroding the independence of state and local governments by imposing costly regulations. There have been calls for repealing provisions of the FLSA that extend coverage to state and local governments to uphold the principles of federalism.
