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FLSA Overview

 
 

The Fair Labor Standards Act – An Overview


flsa key terms

The Fair Labor Standards Act


The Fair Labor Standards Act (FLSA) is a federal law enforced by the Department of Labor (DOL) that establishes minimum wage, overtime pay, recordkeeping, and youth employment standards for employees. Regarding overtime pay, employees are to receive overtime pay (or compensatory time in the public sector) at 1.5 times the employee’s regular rate for hours worked over 40 in a workweek, except for those designated as exempt from overtime pay. To qualify as exempt, an employee must satisfy all of the following three tests:

  • Be paid on a salary (not hourly) basis, AND
  • Job duties must meet the duties test for one or more of the exemption categories, AND
  • Have a salary above the minimum salary threshold.

For more information about the current exemptions, see DOL Fact Sheet #17A.