Fair Labor Standards Act - FLSA

AAA

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.

INVESTOPEDIA EXPLAINS '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. Labor Market Flexibility

    Firms' ability to make changes to their workforce in terms of ...
  2. International Labor Organization ...

    A United Nations agency that strives to serve as a uniting force ...
  3. Labor Productivity

    A measurement of economic growth of a country. Labor productivity ...
  4. Bureau Of Labor Statistics - BLS

    A government agency that produces economic data that reflects ...
  5. Severance Pay

    The compensation that an employer provides to an employee who ...
  6. Department Of Labor - DOL

    A U.S government cabinet body responsible for standards in occupational ...
Related Articles
  1. Economics

    The Economics Of Labor Mobility

    Loosening labor restrictions has both good and bad effects for a country and its workers.
  2. Economics

    The Unemployment Rate: Get Real

    Depending on how it's measured, the unemployment rate is open to interpretation. Learn how to find the real rate.
  3. Economics

    What You Need To Know About The Employment Report

    This widely watched indicator of economic well-being directly influences the market.
  4. Economics

    Globalization: Progress Or Profiteering?

    Proponents of globalization argue that it helps the economies of developing nations and makes goods cheaper, while critics say that globalization reduces domestic jobs and exploits foreign workers. ...
  5. Economics

    What Are Economies Of Scale?

    Is bigger always better? Read up on the important and often misunderstood concept of economies of scale.
  6. Economics

    Unions: Do They Help Or Hurt Workers?

    Learn the pros and cons of these organizations and how they fit into today's economy.
  7. Fundamental Analysis

    How do you use Microsoft Excel to calculate liquidity ratios?

    Learn how to calculate the most common liquidity ratios in Microsoft Excel by inputting financial figures from a company's balance sheet.
  8. Professionals

    How are an employee's fringe benefits taxed?

    Discover how receiving fringe benefits can increase total compensation for employees and how it is important to understand how these benefits are taxed.
  9. Professionals

    What incentives does an employer have in offering fringe benefits?

    Learn how offering fringe benefits is a powerful business tool for employers to attract and retain quality employees while also keeping overhead low.
  10. Professionals

    What are some examples of common fringe benefits?

    Learn how offering fringe benefits can be a strategic recruitment and retention tool for employers and drastically increase total compensation for employees.

You May Also Like

Hot Definitions
  1. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  2. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  3. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  4. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  5. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  6. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
Trading Center