10/17/2003
Overview: The FLSA establishes minimum wage requirements, overtime pay, record-keeping and child labor standards for full and part-time employees. State minimum wage laws differ widely and should be consulted in conjunction with this guidance.
Application: The FLSA applies to any business with two or more employees.
Minimum Wage: The Federal minimum wage is currently $5.15 per hour. Variations of this rate are:
- the higher rate if federal and state minimum wage rates differ;
- employees under 20 years of age may be paid $4.25 per hour during their first 90 consecutive calendar days of employment with an employer;
- certain full-time students, student learners, apprentices and workers with disabilities may be paid less than the minimum wage under special certificates issued by the Wage-Hour office of the Department of Labor.
Overtime Pay: Overtime pay is at least 1 1/2 times an employee's regular rate of pay and applies to all hours worked over a 40 hour workweek. Some exceptions to overtime pay and minimum wage include:
- executive, administrative, and professional employees ("white collar exemption"); or
- outside sales employees; or
- seasonal amusement or recreational establishments; or
- casual babysitters and certain farm workers.
Child Labor: An employee must be at least 16 years old to work in most non-farm jobs and at least 18 to work in non-farm jobs declared hazardous by the Secretary of Labor. Youths 14 and 15 years old may work limited hours with strict conditions. For example, work may not begin before 7 a.m. or end after 7 p.m., except from June 1 through Labor Day, when evening hours are extended to 9 p.m. Different rules apply in agricultural employment.
Record-keeping Requirements: If an employee is subject to the minimum wage provisions or both the minimum wage and overtime provisions, an employer must keep extensive payroll records.
Notice: The notice, Your Rights Under the Fair Labor Standards Act must be posted where employees can readily see it. A copy of this notice is available in the NFIB Legal Foundation's new Federal Employee Handbook for Independent Business.
