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FLSA

The Fair Labor Standards Act — the US federal law that establishes minimum wage, overtime pay, recordkeeping, and child-labor standards.

Detailed Definition

The Fair Labor Standards Act (FLSA), enacted in 1938 and codified at 29 U.S.C. §§201–219, is the foundational US federal labor law. It establishes minimum wage (currently $7.25/hour federal, often higher under state law), requires overtime pay at 1.5x the regular rate for hours worked over 40 in a workweek, defines recordkeeping requirements for employers (29 CFR Part 516), and restricts child labor.

The FLSA distinguishes between exempt employees (typically salaried executive, administrative, professional, computer, or outside-sales workers earning above the salary threshold — currently $1,128/week or $58,656/year as of 2026) and non-exempt employees (entitled to minimum wage and overtime). Misclassification is one of the most expensive compliance mistakes US employers make.

FLSA enforcement is handled by the US Department of Labor's Wage and Hour Division. Common violations include unpaid overtime, off-the-clock work, miscalculated regular rate (failing to include bonuses), and inadequate timekeeping. Modern HR platforms like Peoplifi enforce FLSA-aligned overtime calculations, maintain compliant time records, and flag at-risk classifications.

Example

Under the FLSA, our non-exempt warehouse staff earn 1.5x their regular rate for any hours worked beyond 40 in a workweek.

Related Terms

OvertimeExempt vs Non-ExemptFMLAPayroll

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