what is flsa

The Fair Labor Standards Act (FLSA) is a federal law that establishes minimum wage, overtime pay, recordkeeping, and child labor standards. It requires payment of at least the minimum wage for all hours worked in a workweek and time and one-half an employees regular rate for time worked over 40 hours in a workweek. The FLSA covers most employees in the United States, including those working in the private sector and in federal, state, and local governments. The law also determines the exempt or nonexempt status of jobs and overtime requirements. The FLSA requires that overtime be calculated on the employee’s regular rate of pay, which includes all remuneration for employment paid to or on behalf of the employee. The FLSA allows most employees to choose time off rather than being paid for overtime. However, the FLSA limits the amount of overtime nonexempt employees can earn to 240 hours of comp time or 160 hours of paid overtime.