Fair Labor Standards Act - FLSA

DEFINITION of 'Fair Labor Standards Act - FLSA'

A United States law which sets out various labor regulations regarding interstate commerce employment, including minimum wages, requirements for overtime pay and limitations on child labor. In general, the FLSA is intended to protect workers against certain unfair pay practices or work regulations. The Fair Labor Standards Act is one of the most important laws for employers to understand since it sets out a wide array of regulations for dealing with employees.

BREAKING DOWN 'Fair Labor Standards Act - FLSA'

The law goes on to specify at which times workers are "on the clock" and which times are not paid hours. There are also elaborate rules concerning whether employees are exempt or non-exempt from Fair Labor Standards Act overtime regulations. The FLSA requires overtime to be paid at 1.5 times the regular hourly rate for all hours worked in excess of 40 hours during a seven-day work week.

RELATED TERMS
  1. Non-exempt Employee

    The term “Non-exempt Employee” refers to a category of employees ...
  2. Aggregate Hours

    The sum of the hours worked by all employed people, either full ...
  3. Labor Market

    The labor market refers to the supply and demand for labor, in ...
  4. Base Pay

    An employee's initial rate of compensation, excluding extra lump ...
  5. Employment Situation Report

    A monthly report compiling a set of surveys in an attempt to ...
  6. Collective Bargaining

    The process of negotiating the terms of employment between an ...
Related Articles
  1. Markets

    Why New Overtime Rules May Hurt Workers

    Discover why the Obama administration's new overtime rules may end up hurting businesses, slowing economic growth and punishing workers.
  2. Professionals

    Which Is Better: A Salary or Hourly Wages?

    When it comes to getting paid, a salary may be the more prestigious option, but you actually could take home more being paid by the hour. Here's why.
  3. Personal Finance

    Hiring? Regulations Small Businesses Need to Know

    When a small business becomes an employer, it has new responsibilities. Make sure you familiarize yourself with regulatory requirements.
  4. Professionals

    The Benefits of Salary Vs. Hourly Wages

    Going from an hourly position to a salaried one often comes with a big pay raise. But there are some things to think about before celebrating.
  5. Markets

    Minimum Wage: Good Cause Or Economic Pariah?

    Here are some positives and negatives to help you decide where you stand on the minimum wage debate.
  6. Markets

    The Economics Of Labor Mobility

    Loosening labor restrictions has both good and bad effects for a country and its workers.
  7. Markets

    Why $15 Minimum Wage Might Not Be Good News for Anyone (MCD, DPZ)

    Discover why the minimum wage isn't the panacea it is made out to be, and how artificial wage increases strain businesses and consumers.
  8. Markets

    Minimum Wage Increase: Will Technology Help Margins for U.S. Companies? (MCD, MSFT)

    Discover why the $15 per hour minimum wage movement may unintentionally be sowing the seeds for a new crop of jobs-stealing robots.
  9. Personal Finance

    Teaching Financial Literacy To Teens: Making Money

    Teens can get part-time jobs to earn their money, but there are rules that must be followed and taxes to be paid.
  10. Markets

    How a Higher Minimum Wage Would Impact the Economy

    Doubling pay for hourly workers could have several knock-on effects to the economy. Here's a brief look at a big issue.
RELATED FAQS
  1. The company I am working for said that 401(k) contribution can be based on only straight ...

    The regulation (law) that addresses your specific question has not changed. However, both employers may be right. Here's ... Read Answer >>
  2. How does government regulation impact the retail sector?

    Learn about the types of federal agencies and regulations that retail businesses have to deal with, including inconsistent ... Read Answer >>
  3. How can minimum wages contribute to a market failure?

    See why minimum wage laws create a market failure among low-productivity workers by making it illegal for companies to hire ... Read Answer >>
  4. What impact does government regulation have on the financial services sector?

    Learn about how the financial services industry is affected by government regulation, and the different types of regulations ... Read Answer >>
  5. What are key economic growth rates that can be used to determine the economic health ...

    Discover the indicators that correlate with real economic health, and learn why many traditional metrics do not function ... Read Answer >>
  6. What kinds of productivity data does the Bureau of Labor Statistics keep?

    Learn about the types of productivity data kept by the Bureau of Labor Statistics, including labor productivity and multifactor ... Read Answer >>
Hot Definitions
  1. Glass-Steagall Act

    An act the U.S. Congress passed in 1933 as the Banking Act, which prohibited commercial banks from participating in the investment ...
  2. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  3. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  4. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  5. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  6. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
Trading Center