Who is Covered

The FLSA covers all employees engaged in transporting or producing goods that travel across lines (interstate commerce). The law also covers employees who work for companies that have annual sales or business of $500,000 or more, employees of hospitals, or residential facilities that care for the physically or mentally ill, disabled, or aged, and employees of public agencies. Essentially, the FLSA covers almost all employees.

The FLSA defines “employee” as any employed individual who is not specifically exempted from the law’s provisions. Exempt individuals include workers in bona fide executive, administrative, or professional positions, and outside salespersons. These employees are classified “exempt” employees, whereas those within the scope of the FLSA are referred to as “nonexempt”.

Basic Provisions/Requirements

Under the FLSA, a universal wage is determined for all covered workers. The current minimum wage is $5.15 an hour, with the most recent increase implemented on September 1, 1997. Youths under 20 years of age may be paid a minimum wage of not less than $4.25 an hour during the first 90 consecutive calendar days of employment with an employer.

In addition to setting the minimum wage, the FLSA requires employers to pay overtime (one and one-half times the employee’s regular rate) to covered employees who work more than 40 hours in one workweek. The federal law does not require employers to pay overtime for hours worked in excess of eight hours per day (but some states may require it) or for work performed on holidays, Saturdays, or Sundays. The law does not limit the number or hours an employee is required to work except under child labor laws (for those at least 16 years old).

Employers are required to keep records on wages, hours and other items as set out in the Department of Labor’s regulations. Most of this information is of the type generally maintained by employers in ordinary business practice.