Fair labor Standards Act (FLSA) is also referred to as the federal Wage and Hour law. It was enacted in 1938, and holds its reputation as a family-friendly legislation. It has won a high approval from the employers affected under it due to its popular and beneficial regulations. The act effectively controls minimum wage, overtime, equal pay, recordkeeping, and child labor for employees of enterprises appointed in national or foreign trade. Employees of state and local governments are as well protected under the Fair Labor Standards Act.
FLSA is imposed by the U.S Department of Labor (DOL) under the Wage and Hour division. It is functional in all states, however all states are permitted to develop their own laws and regulations. Through this method even better protection for their workers is provided rather than it is under the federal law. It is important that employers understand both the state and federal laws, as the two are in conflict with each other. If the employee understands the regulations in both acts, he/she can benefit from the more beneficial one.
However, there are certain areas that the FLSA does not regulate. They include vacation pay, holiday pay, severance pay, sick pay, meal or rest periods, time off for holidays or vacations, premium pay for weekend or holiday work, pay raises, fringe benefits, discharge notices, reasons for discharge, or the immediate payment of final wages to terminate employees.
Recently, the U.S. Department of labor has modified the regulations concerning overtime pay. The new rules standardizing the exempt or nonexempt status of employees are having an enormous impact on most employers in the United States. Exempt employees perform “white-collar” jobs and receive facilities if they meet certain tests concerning job duties and responsibilities, and are paid a certain amount of salary................
