Fair Labor Standards Act (FLSA): (29 USC 201)

• This law is also known as “Wage/Hour” law, as the Wage & Hour Division of the U.S. Department of Labor (DOL) enforces it. The FLSA has four main components: minimum wage requirements, overtime requirements, child labor regulations, and equal pay provisions.
• The minimum wage rules apply to any employee of any company who produces goods for interstate commerce or engages in duties affecting interstate commerce during any workweek. In general, the law applies to most employees for work done for most employers, although there are certain exceptions for certain industries and locations.
• Overtime rules require pay at 1.5 times the hourly rate of the employee for all hours worked over 40 in any workweek, unless the employee performs work that is considered “exempt” from overtime. Generally, to be exempt, the work must be of a “professional” character (e.g., work performed by a “knowledge worker,” such as a lawyer, doctor, accountant, teacher, or other person in a profession which is predominantly intellectual in nature); or the person must be performing work primarily as a manager or supervisor (working foremen often are not exempt); or the person must be performing work of a high-level executive or administrative nature (e.g., work as a negotiator or agent, with substantial discretion and authority); or the person must be an outside sales representative.
• Because a number of industries have managed to lobby for exceptions to minimum wage and/or overtime requirements, it may be useful to call your local Wage/Hour office to determine if any exceptions apply to your industry or to obtain the full text of the DOL regulations to check for such coverage’s.
• Generally, the child labor provisions restrict the employment of youths below the age of 18 to no more than 20 hours per week when school is in session, and further limit their ability to work around dangerous equipment and machinery. Some special provisions exist for children working for parents/relatives on family farms. Often, work certificates may be required to employ youths during the school year, so it is advisable to contact Wage/Hour early to obtain guidance, as fines can be imposed and bad publicity can result from failure to comply with the law.
• Employees who are not paid in compliance with the law may complain to DOL or can file their own actions in federal court. They can recover the sums which they should have been paid (going back 2 years from the date of suit, or 3 years if the violation is found to have been willful), and also can recover an equal amount in liquidated damages unless the company can establish substantial justification for failure to comply with the law. They also may recover attorney fees.
• Of course, as is common in federal employment laws, any employee who makes a complaint to DOL or assists in such a complaint or attempts to enforce his/her rights is generally protected from retaliation (and may seek damages for emotional distress, as well as punitive damages, if retaliation is shown). In addition, the FLSA provides for criminal penalties (including fine and imprisonment), which are most often used for repeat offenders.
• The DOL has extensive regulations concerning the FLSA, and also has several publications which may be useful to employers which are available from the DOL website. In addition, the DOL requires that a workplace poster be displayed which explains FLSA rights to employees. The provisions of the Equal Pay Act are discussed below, so this part of the FLSA will not be discussed here.