how the flsa works
the flsa specifies when workers are on the clock and when times are not paid hours there are also detailed rules concerning whether employees are exempt from the flsa overtime regulations the law requires that overtime be paid at one and a half times the regular hourly rate time and a half for all hours worked more than 40 during a seven day workweek 3the flsa applies to workers who have an employee engaged in interstate commerce on the production of goods for commerce it also applies to workers who are employed by an enterprise engaged in commerce or the production of goods for commerce the flsa also applies to domestic service workers housekeepers cooks full time babysitters and employees of hospitals educational institutions at any level and public agencies the nominal amount in annual gross sales or other business that makes an employer subject to the full requirements of the flsa however employees of firms that are not covered enterprises may still be subject to its minimum wage overtime pay record keeping and child labor provisions if they are engaged in interstate commerce or producing goods for interstate commerce 4 and interstate commerce has a broad interpretation companies that regularly use the u s mail telephones or the internet to contact other states are considered engaged in interstate commerce the flsa and workersthe flsa applies only to employers whose annual sales total 500 000 or more or are engaged in interstate commerce which can mean receiving letters phone calls or internet orders from another state nonexempt employees are entitled to overtime pay while exempt employees are not most flsa covered employees are nonexempt some hourly workers are not covered by the flsa but are subject instead to other regulations 3farmworkers may be considered jointly employed by a labor contractor who recruits organizes transports and pays them and a farmer who needs their services and pays the labor contractor for their services 5 in such situations employers falsely categorize workers as volunteers when they meet the definition of employee under the flsa the flsa also sets out how to treat jobs that are primarily compensated by way of tipping in such a case an employer must pay the minimum wage to the employee unless they regularly receive more than 30 per month from gratuities if that employee s pay tips included does not equal minimum wage then the employer must make up the difference such workers must either receive all their tips or be included in a tip pool for which the flsa sets guidelines bussers are meant to be included in a tip pool under flsa rules because of the customer visible nature of their work 6here is a summary of the most important protections in the flsa the flsa is also known as the wages and hours bill flsa exemptionsthe flsa has a broad reach but does not apply to all workers and workplaces exemptions exist both for employers and those they employ and it is often easier to understand who is covered by the act by looking at who isn t the flsa does not apply to the following there are circumstances in which independent contractors who typically are hired to work on specific projects can be deemed employees who fall under flsa jurisdiction if the relationship appears to be permanent if the worker lacks bargaining power concerning the terms of their employment and if the worker is economically dependent on one employer that is almost all their income comes from one company a court would likely rule that they are an employee of that company for purposes of the flsa violations of the fair labor standards act flsa here are some of the most common violations that occur under the act 10history of the flsapresident franklin d roosevelt signed the fair labor standards act into law on june 25 1938 even though it applied to industries whose combined employment represented only about one fifth of the labor force at the time the bill had a bumpy ride in the house of representatives and the senate 15drafted mainly by the secretary of labor frances perkins the act banned all labor for children under 14 and hazardous labor for ages 14 18 set a minimum hourly wage of 25 cents and a maximum workweek of 44 hours to be adjusted to 40 hours by oct 23 1940 and guaranteed time and a half for certain jobs 15already a complex law the flsa has been amended many times most revisions have expanded the law s coverage or adjusted the minimum wage to reflect inflation here are some of the major changes to the flsa if the flsa does not apply here are some other laws and regulations that mightif the flsa does not cover you some other laws and regulations could apply 