What is the FLSA?

The Fair Labor Standards Act (FLSA) is a federal law that requires covered employers to pay certain employees minimum wage and overtime compensation.

  • Minimum wage: employers are required to pay covered, nonexempt employees at least the federal minimum wage (currently $7.25 per hour) for each hour they work up to 40 hours in any given workweek.
  • Overtime: employers are required to pay covered, nonexempt employees overtime compensation at a rate of one and a half times their regular rate of pay for every hour worked over 40 in any given workweek.

The FLSA also sets limits on the number of hours that children may work in agricultural and non-agricultural jobs and sets out employers' recording keep duties.

Who is covered by the FLSA?

The majority of public and private, full-time and part-time employees are covered by the FLSA. To be considered a covered employee, the employee must work for an enterprise engaged in interstate commerce in some way (i.e. making, producing, handling, selling or working on goods or materials that have been moved in or produced for interstate commerce).

In general, an "enterprise" is defined as a business that has a minimum annual dollar volume of $500,000. Certain classes of employees, however, are covered by the FLSA regardless of the annual dollar volume of their employers, including hospital employees and local, state and federal government employees.

Exempt vs. Non-exempt Employees

Not every employee who is covered by the FLSA is entitled to its protections. There are several categories of employees who are considered exempt from the FLSA's overtime and/or minimum wage requirements. Some of these categories include:

  • Executive, administrative and professional workers
  • Outside sales representatives
  • Certain skilled computer professionals
  • Certain seasonal workers and farm workers
  • Commissioned employees in retail and service industries
  • Railroad employees
  • Seamen working on American vessels
  • Taxi drivers

It is important to determine whether an employee is exempt or non-exempt for FLSA purposes and which provisions they are exempt from. For example, some employees may only be partially exempt from the overtime compensation provisions.

Additionally, employees should not assume their employers have correctly categorized them as an exempt or non-exempt employee. In some cases, employers will miscategorize employees as exempt when they are not to avoid paying them overtime wages. Employees who have been wrongfully categorized, whether by accident or on purpose, are entitled to receive any compensation their employer failed to pay them.

What does the FLSA not cover?

The FLSA does not cover all areas of the employee-employer relationship. For example, the FLSA does not mandate that the employer provide any of the following:

  • Meal and rest breaks
  • Paid time off for holidays, vacation, sick days
  • Premium pay for hours worked on weekends or holidays
  • Severance pay
  • Fringe benefits
  • Raises

State laws or the employee's employment contract may cover these items.

In addition, the FLSA does not limit the number of hours an employer may require an employee to work in any given workweek. It also does not preclude an employer from requiring an employee to work overtime hours. The FLSA merely provides that non-exempt employees must be paid at least the federal minimum wage for all hours worked and overtime for any hours over 40 worked within any given work week.

The FLSA sets out the minimum requirements that an employer must follow regarding payment of minimum wage and overtime compensation. If there are state laws that require more of employers than the FLSA, then the state law is the controlling law.

Employee Remedies for FLSA Violations

Employers who have violated any provisions of the FLSA may be subject to civil penalties for their acts. This includes employers who have miscategorized employees as exempt to avoid paying them minimum wage or overtime compensation.

Employees who have not been paid the compensation they are due under the FLSA have several legal options available to them, including:

  • Filing a complaint against their employer with the local branch of the federal Wage and Hour Division
  • Filing a private lawsuit against their employer for unpaid wages and applicable penalties under federal law

The FLSA provides that employers may be fined up to $1100 per violation of the Act's minimum wage or overtime compensation provisions. Employers who are repeat violators or who willfully violate the FLSA may receive a federal prison sentence and be required to pay up to $10,000.

Employees who file a private suit against their employers may be entitled to unpaid wages plus liquidated damages in an amount equal to the unpaid wages in addition to attorney fees and court costs. A two-year statute of limitations applies to most FLSA violation actions. The statute is increased to three years for willful employer violations.

Conclusion

For more information on employee rights under the FLSA or state law, contact an experienced employment law attorney today. The lawyer can review your case and help you determine the best course to take to recover any unpaid compensation owed to you by your employer.