Fair Labor Standards Act (FLSA) example and deffintion
The Fair Labor Standards Act (FLSA) is a federal law in the United States that establishes minimum wage, overtime pay, recordkeeping, and child labor standards for employees in the private sector and in federal, state, and local governments.
Example:
For example, let's say a company called XYZ Corporation operates in the food service industry. They have several employees, including waitstaff, cooks, and dishwashers. The FLSA requires XYZ Corporation to pay their employees at least the federal minimum wage, which is currently set at $7.25 per hour. If any employee works more than 40 hours in a week, they are entitled to overtime pay at a rate of 1.5 times their regular hourly rate.
If a waiter at XYZ Corporation earns $8 per hour and works 45 hours in a week, the FLSA requires the employer to pay them 40 hours at their regular rate of $8 per hour and 5 hours at their overtime rate, which is $12 per hour ($8 x 1.5). So, the total pay for that week would be calculated as follows: (40 hours x $8) + (5 hours x $12) = $320 + $60 = $380.
The FLSA also sets regulations regarding recordkeeping. Employers must keep accurate records of employees' wages, hours worked, and other relevant information for a specified period of time to ensure compliance with the law.
In addition, the FLSA provides guidelines for the employment of minors. It prohibits employing children under the age of 14 in most non-agricultural jobs, sets restrictions on the hours and type of work that minors aged 14-15 and 16-17 can perform, and provides additional protections for young workers to ensure their safety and well-being in the workplace.
Overall, the FLSA aims to ensure fair wages and conditions for workers, promote economic stability, and protect the rights of employees in the United States.