The Fair Labor Standards Act2

The FLSA provides for a federal minimum wage, overtime pay, and child labor protections. The FLSA covers most, but not all, private and public sector employees. The FLSA exempts certain employers and employees from the minimum wage, overtime, or child labor standards of the act. Certain employees in computer-related occupations are also exempt from both the minimum wage and overtime if they meet an hourly wage or weekly salary test and a job duties test. The Basic Minimum Wage

The basic minimum wage is raised periodically by Congress. As of January 1, 2014, 21 states and the District of Columbia have minimum wage rates that are higher than the federal minimum wage. Most employees are paid more than the basic minimum wage. Tipped Workers

Tipped employees may be paid less than the basic minimum wage, but their cash wage plus tips must equal at least the basic minimum wage. Under the FLSA, an employer may pay a tipped worker a minimum cash wage of $2.13 if the employee receives at least $5.12 an hour in tips (for a total hourly wage of $7.25). Workers with Disabilities

Under Section 14(c) of the FLSA, employers may pay special minimum wages (SMWs) to workers with disabilities. The purpose of the SMWs is to provide persons with disabilities the opportunity to work. American Samoa and the Commonwealth of the Northern Mariana Islands (CNMI) were not covered by the FLSA of 1938. In 2007, Congress passed the Fair Minimum Wage Act of 2007 ( P.L. The act delayed the increases in the minimum wages in American Samoa for 2012, 2013, and 2014. The next minimum wage increases in American Samoa are scheduled for September 30, 2015. On September 30, 2012, the minimum wage in CNMI increased by $0.50 an hour to $5.55. The minimum wage in CNMI is currently scheduled to rise by $0.50 an hour, to $6.05, on September 30, 2014. Comp Time in Lieu of Overtime Pay

The FLSA, under Section 7(o), allows covered, nonexempt state and local government employees to receive compensatory time off ("comp time") for hours worked over 40 in a workweek. Comp time is time off with pay in lieu of overtime pay. Section 7 of the FLSA requires employers to pay at least time-and-a-half to employees who work overtime. Section 7(r) requires covered employers to provide break time for nursing mothers. Section 13(a)(17) applies specifically to employees in computer-related occupations. Under the 2004 regulations, computer professionals are exempt from the minimum wage and overtime standards of the FLSA if they meet the job duties test provided in regulations and, if they are paid an hourly wage, are paid at least $27.63 an hour or, if they are paid a salary, are paid at least $455 a week. Under Section 13(a)(15) of the FLSA, domestic service workers who provide companionship services in private homes are exempt from both the minimum wage and overtime standards of the act. On October 1, 2013, DOL published in the Federal Register new regulations that changed the definition of companionship services and limited the minimum wage and overtime exemptions for domestic service workers employed in private home to those workers who are employed directly by an individual or family. The new regulations also extend minimum wage and overtime coverage to companions employed by a third party employer, and extend overtime coverage to live-in domestic workers employed by a third party. 110-28 ). Title VIII of the act, "Fair Minimum Wage and Tax Relief," increased the basic federal minimum wage from $5.15 to $5.85 an hour effective July 2007, from $5.85 to $6.55 an hour effective July 2008, and from $6.55 to $7.25 an hour effective July 2009.
The Fair Labor Standards Act (FLSA) provides workers with minimum wage, overtime pay, and child labor protections. The FLSA covers most, but not all, private and public sector employees. In addition, certain employers and employees are exempt from coverage.
Provisions of the FLSA that are of current interest to Congress include the basic minimum wage, subminimum wage rates, exemptions from overtime and the minimum wage for certain persons who provide companionship services, the exemption for certain employees in computer-related occupations, compensatory time ("comp time") in lieu of overtime pay, and break time for nursing mothers.
Basic Minimum Wage
The FLSA requires employers to pay covered, nonexempt employees at least the minimum wage. In 2007, the basic minimum wage was raised, in steps, from $5.15 to $7.25 an hour. The basic minimum wage was raised to $7.25 an hour effective July 24, 2009. As of January 1, 2014, 21 states and the District of Columbia have minimum wage rates that are higher than the federal minimum wage. Basic minimum wage rates in American Samoa and the Commonwealth of the Northern Mariana Islands (CNMI) are lower than in the continental United States. In 2007, Congress passed the Fair Minimum Wage Act of 2007 (P.L. 110-28), which mandated annual increases of $0.50 an hour in the minimum wages of American Samoa and CNMI. In 2010, Congress temporarily suspended these increases. The minimum wage in CNMI increased by $0.50 an hour to $5.55 on September 30, 2012, and is scheduled to rise to $6.05 an hour on September 30, 2014. In July 2012, Congress delayed the wage increases in American Samoa. The next minimum wage increases in American Samoa are scheduled for September 30, 2015.
Subminimum Wage Rates
Tipped employees may be paid less than the basic minimum wage, but their cash wage plus tips must equal at least the basic minimum wage of $7.25. Employers may pay tipped workers $2.13 an hour in cash wages, provided the employees receive at least $5.12 an hour in tips. The latter amount is called a "tip credit." Employers may pay special minimum wages (SMWs) to workers with disabilities. The purpose of the SMWs is to provide persons with disabilities the opportunity to work.
Overtime
The FLSA requires employers to pay at least time-and-a-half to covered, nonexempt employees who work more than 40 hours in a week at a given job. The FLSA allows covered, nonexempt state and local government employees to receive compensatory time off (comp time) for hours worked over 40 in a workweek. Comp time is time off with pay in lieu of overtime pay.
Exemptions
The FLSA exempts certain employers and employees from the minimum wage, overtime pay, or child labor standards of the act. Certain employees in computer-related occupations are exempt from both the minimum wage and overtime standards of the FLSA if they meet an hourly wage or weekly salary test and a job duties test. Domestic service workers who provide companionship services in private homes are exempt from both the minimum wage and overtime requirements of the FLSA if they are employed directly by an individual or family.
Under new regulations published in the Federal Register on October 1, 2013, minimum wage and overtime coverage now applies to companions who work in private households if they are employed by a third party. Overtime pay now applies to live-in domestic service workers who are employed by a third party.