FLSA 101: An Employer’s Guide to the Fair Labor Standards Act in 2024

An Overview on the FLSA and its Key Components

Minimum Wage

The FLSA established a minimum wage at the federal level. In the year 1938, that wage was $0.25. Today, that minimum wage sits at $7.25, a number which hasn’t changed since 2009. In fact, we’re currently in the midst of the longest stretch without a federal minimum wage increase in US history. It is worth noting, however, that many states and cities have implemented their own minimum wage rates far exceeding the current federal rate. To stay competitive, most employers have set their own wages to far exceed federal levels  as well.

Overtime Pay

Another wage reform was the implementation of overtime pay. The FLSA established what we now know as the “40-hour” workweek and “8-hour” workday. Any non-exempt employee who works over 40 hours a week is entitled to overtime pay that is one-and-a-half times their regular pay. Whether an employee is considered “exempt” or “non-exempt” depends on a number of factors. Which brings us to our next section.

Exempt vs. Non-Exempt Employees

The FLSA established certain exemptions for employees that disqualify them from receiving overtime pay. These exemptions are for people who typically perform executive, professional, or administrative duties and meet specific salary thresholds. In 2024, the Department of Labor increased both the standard salary level for exemption and the salary requirement for highly compensated employees. More on that in a bit.

Recordkeeping

Another important aspect of the FLSA is the requirement that employers keep accurate records of hours worked and hours paid to employees. There isn’t a specific form that employees are required to fill out, but the law does require that certain identifying information be recorded, including personal identifying information (name, address etc.), hours worked, hours paid, and other key information like additions or deductions.

Child Labor

One of the most important accomplishments of the FLSA was the introduction of restrictions on both the type and amount of work imposed on minors. For example, workers under the age of 14 generally aren’t allowed to work (with some exceptions), and those aged 14 to 15 can only work limited job types and hours.