FLSA
What does "FLSA" mean in law?
The Fair Labor Standards Act of 1938 (FLSA) is the principal federal statute governing minimum wage, overtime pay, recordkeeping, and child labor standards for employees in the private sector and in federal, state, and local governments. The Act requires covered, non-exempt employees to receive overtime pay at one and one-half times their regular rate for hours worked in excess of forty per workweek. Key to FLSA litigation is the distinction between 'exempt' and 'non-exempt' employees, with exemptions for executive, administrative, professional, outside sales, and certain computer employees who meet specific salary and duties tests. The Supreme Court in Adkins v. Children's Hospital initially struck down minimum wage legislation as unconstitutional, but that decision was later overruled by West Coast Hotel Co. v. Parrish, paving the way for the FLSA's enactment.
Definition
The Fair Labor Standards Act of 1938 (FLSA) is the principal federal statute governing minimum wage, overtime pay, recordkeeping, and child labor standards for employees in the private sector and in federal, state, and local governments. The Act requires covered, non-exempt employees to receive overtime pay at one and one-half times their regular rate for hours worked in excess of forty per workweek. Key to FLSA litigation is the distinction between 'exempt' and 'non-exempt' employees, with exemptions for executive, administrative, professional, outside sales, and certain computer employees who meet specific salary and duties tests. The Supreme Court in Adkins v. Children's Hospital initially struck down minimum wage legislation as unconstitutional, but that decision was later overruled by West Coast Hotel Co. v. Parrish, paving the way for the FLSA's enactment.
Example
When a retail store classifies assistant managers as exempt to avoid paying overtime, but those managers spend 90% of their time performing non-managerial tasks like stocking shelves, the misclassification violates the FLSA.