The Fair Labor Standards Act (FLSA) is a defining law of labor relations. Being the operative law on labor standards; it sets out minimum wage and working hours for employees in any sector.
It has rules on recordkeeping, overtime pay and child labor. Promulgated first in 1938; the Fair Labor Standards Act (FLSA) has been amended many times over the years, accommodating changes that have taken place over time.
The types businesses covered
These businesses are covered by the Fair Labor Standards Act:
- Enterprises with employees who carry out business within or outside their respective states
- Firms doing business of no less than $500,000 in annual dollar volume of business applies
Those to whom the Fair Labor Standards Act applies irrespective of business volume
The Fair Labor Standards Act has exceptions for some kinds of organizations, no matter what their business size:
- institutions that take care of the sick, aged, mentally ill, or disabled that reside on the premises
- schools for children who are mentally or physically disabled or gifted
- preschools, elementary and secondary schools, and institutions of higher education; and federal, state, and local government agencies.
Other workers covered
Other workers covered by the Fair Labor Standards Act include domestic service workers – such as –cooks, chauffeurs, day workers, housekeepers, or full‑time babysitters, so long as they receive at least $1,700 in 2009 in cash wages from one employer in a calendar year, or if they work a total of more than eight hours a week for one or more employers.
The Fair Labor Standards Act requires employers of covered employees a minimum wage of not less than $7.25 per hour, with effect from July 24, 2009. For those aged below 20 years, the minimum wage paid should be at least $4.25 an hour during the first 90 consecutive calendar days of employment with an employer.
The Act also clearly states that an employer need not remove any worker from work if the need for hiring someone at the minimum wage or age arises.
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