🇺🇸 US · Employment Law · Updated 2026-06-27
What is the Fair Labor Standards Act (FLSA)?
The FLSA is the primary US federal law governing minimum wage, overtime pay, recordkeeping, and child labour standards. It applies to most private and public sector employers. Minimum wage: $7.25/hr federal (many states are higher). Overtime: 1.5× for hours over 40 per week.
The Fair Labor Standards Act (FLSA), enacted in 1938, is the foundational federal employment law in the US. It establishes the federal minimum wage ($7.25/hour, though many states and localities set higher rates), the requirement to pay overtime at 1.5× the regular rate for hours over 40 in a workweek, recordkeeping standards for employers, and child labour protections.
The FLSA covers most private sector employees and state/local government workers. Federal employees are covered by separate laws. The FLSA exempts certain categories of workers from overtime requirements — notably 'exempt' employees in executive, administrative, professional, and outside sales roles who earn more than $684/week ($35,568/year) and meet specific duties tests. Being paid a salary does not automatically make you exempt.
The Department of Labor's Wage and Hour Division (WHD) enforces the FLSA. Workers can file complaints with WHD or bring private civil actions. Back pay can be recovered for up to 2 years (3 years for willful violations), and liquidated (double) damages are available. There is no cap on recovery.
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