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Human Resources Procedures Manual

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Fair Labor Standards
Act (FLSA)

The Fair Labor Standards Act defines the minimum standards for wages and overtime entitlement. It outlines administrative procedures to ensure that covered worktime must be compensated. Included in the Act are provisions related to child labor, equal pay, and portal-to-portal activities. In addition, the Act exempts specified employees or groups of employees from the application of certain of its provision.

What FLSA means to your company

Your Company must pay covered nonexempt workers a minimum wage of not less than $7.25 an hour as of July 24, 2009. Overtime must be paid at a rate of not less than one and one-half times the employee's regular rate of pay after 40 hours of work in a work week, regardless of the number of days worked in that week.

NOTE: Employees Various minimum wage exceptions apply under specific circumstances to workers with disabilities, full-time students, youth under age 20 in their first 90 consecutive calendar days of employment, tipped employees, and student learners.
Your employees must be at least 16 years old to work in most non-farm jobs, and at least 18 to work in non-farm jobs declared hazardous by the Secretary of Labor.

NOTE: Youths 14 and 15 years old may work outside school hours in various non-manufacturing, non-mining, and non-hazardous jobs, provided they work no more than 3 hours on a school day or 18 hours in a school week, or 8 hours on a non-school day or 40 hours in a non-school week. Also, work may not begin before 7 a.m. or end after 7 p.m., except from June 1 through Labor Day, when evening hours are extended to 9 p.m. Different rules apply in agricultural employment.

Your Company must pay wages on the regular payday for the pay period covered. Deductions made from wages for such items as cash or merchandise shortages, employer-required uniforms, and tools of the trade, are not legal to the extent that they reduce the wages of employees below the minimum rate required by FLSA or reduce the amount of overtime pay due under FLSA.

Your Company may not discriminate against or discharge workers who file a complaint or participate in any proceedings under the Act.

Your Company is required by law to display the Fair Labor Standards Act (FLSA) Minimum Wage poster (available in PDF format from the Department of Labor's web site) in conspicuous places in all Company locations.

Note: Certain occupations and establishments are exempt from the minimum wage and/or overtime pay provisions. Special provisions apply to workers in American Samoa. Where state law requires a higher minimum wage than the Federal government, the higher standard applies.