Expanding your business to the United States offers tremendous opportunities, but navigating America’s complex employment landscape can feel overwhelming. Among all federal labor laws, none is more fundamental to your daily operations than the Fair Labor Standards Act (FLSA). Whether you’re hiring your first US employee or scaling a distributed workforce across multiple states, FLSA compliance affects every paycheck, every overtime hour, and every employment decision you make.
The consequences of getting it wrong are severe. Recent enforcement data reveals that companies paid out over $149.9 million in FLSA violation back wages during fiscal year 2024, with one Pennsylvania healthcare group alone facing a $35.8 million judgment for overtime violations affecting 6,000 workers. Even smaller businesses face substantial penalties—in 2023, a federal court awarded $254,628 in back wages and damages to just 21 drivers after the Department of Labor found that Travelon Transportation, a Minnesota medical transport company, had misclassified them as independent contractors.
“The FLSA touches virtually every aspect of employment in the United States, from basic wage calculations to complex overtime exemptions,” explains Geanice Barganier, Vice President of People & Operations at Foothold America. “International companies often underestimate the complexity of compliance, especially when operating across multiple states with varying requirements.”
This comprehensive guide will equip you with the knowledge to navigate FLSA requirements confidently, protect your business from compliance risks, and establish sustainable employment practices in the American market.
Understanding the Fair Labor Standards Act: Foundation of US Employment Law
The Fair Labor Standards Act, enacted in 1938 during the Great Depression, established the fundamental employment standards that govern most private and public employment in the United States today. Congress endorsed the act because its provisions were meant to both protect workers and stimulate the economy, finding that employers paying substandard wages caused decreased wages within industries and left one-third of the U.S. population “ill-nourished, ill-clad, and ill-housed”.
The FLSA serves four primary purposes:
- Minimum wage protection: Ensuring workers receive at least the federal minimum wage
- Overtime compensation: Requiring premium pay for work exceeding 40 hours per week
- Child labor restrictions: Protecting minors from hazardous working conditions
- Recordkeeping requirements: Mandating employers maintain accurate employment records
The FLSA is enforced by the Wage and Hour Division (WHD) of the US Department of Labor, which conducts investigations, recovers back wages, and assesses penalties for violations.
Who Must Comply with the FLSA?
The FLSA applies to employers engaged in interstate commerce or in the production of goods for interstate commerce. In practical terms, this covers virtually all businesses operating in the United States, including:
- Companies with annual gross sales of $500,000 or more
- Hospitals and healthcare facilities
- Educational institutions
- Government agencies at all levels
- Individual employees engaged in interstate commerce
For international companies, FLSA coverage typically begins the moment you hire your first US employee, regardless of your company’s size or revenue.
Federal Minimum Wage: Current Requirements and State Variations
The federal minimum wage under the FLSA is $7.25 per hour, effective since July 24, 2009. However, this represents only the federal floor—many states and localities have established higher minimum wage rates that supersede federal requirements.
2025 State Minimum Wage Landscape
When federal and state minimum wage laws differ, employers must pay the higher rate. The variation across states is substantial:
Wage Tier | States/Jurisdictions | Examples |
$15.00+ | 14 jurisdictions | Washington ($16.66), California ($16.50), New York ($15.50-$16.50), Connecticut ($16.35) |
$12.00-$14.99 | 13 states | Colorado ($14.81), Maine ($14.65), Arizona ($14.70), Hawaii ($14.00) |
$10.00-$11.99 | 6 states | Ohio ($10.70), Montana ($10.55), Virginia ($12.41), Nebraska ($13.50) |
$7.25 (Federal) | 20 states | Alabama, Georgia, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, New Hampshire, North Carolina, North Dakota, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Wisconsin, and Wyoming |
Source: U.S. Department of Labor State Minimum Wage Laws, updated July 2025
Key State Variations for International Employers
22 states experienced minimum wage increases in 2025, including Alaska, Arizona, California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maine, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, New York, Ohio, Rhode Island, South Dakota, Vermont, and Washington.
Automatic Indexing: 19 states and D.C. index their minimum wages for inflation, meaning rates adjust annually without legislative action.
Local Variations: Cities and counties often exceed state requirements. Burien, WA has the highest locally mandated minimum wage at $21.16 per hour for large employers.
“Understanding minimum wage variations across states is crucial for companies with distributed workforces,” explains Angelique Soulet-Bangurah, PHR, Head of EOR Services & Talent Acquisition Lead at Foothold America. “What complies with federal law may violate state requirements, creating significant liability exposure for international employers unfamiliar with the complexity.”
Overtime Requirements: The 40-Hour Rule and State Variations
The FLSA requires covered employers to pay non-exempt employees overtime compensation at a rate of one and one-half times their regular hourly rate for all hours worked over 40 in a workweek.
Key Overtime Principles
Workweek Definition: The FLSA defines a workweek as any fixed and regularly recurring period of 168 hours (seven consecutive 24-hour periods). Employers can establish any seven-day period as their workweek, but it must be consistent.
No Daily Overtime Requirement: Unlike some countries, federal law doesn’t require overtime pay for work on weekends, holidays, or for exceeding eight hours in a single day—only for exceeding 40 hours in a workweek.
Regular Rate Calculation: Overtime must be calculated based on the employee’s “regular rate,” which includes not just hourly wages but also certain bonuses, commissions, and other compensation.
State Overtime Requirements Beyond Federal Law
Several states impose additional overtime requirements:
State | Daily Overtime | Weekly Overtime | Special Provisions |
California | 8 hours (1.5x), 12 hours (2x) | 40 hours | Double time on 7th consecutive day after 8 hours |
Alaska | 8 hours | 40 hours | Applies to employers with 4+ employees |
Nevada | 8 hours (for employees earning <1.5x minimum wage) | 40 hours | Exemption for higher-paid employees |
Colorado | 12 hours | 40 hours | Applies to retail, service, food/beverage, health sectors |
Source: Department of Labor State Minimum Wage Laws
Recent Overtime Salary Threshold Changes
The Department of Labor’s efforts to raise overtime salary thresholds have created significant compliance challenges. As of November 2024, a federal court vacated the 2024 final rule, returning to the 2019 thresholds:
- Standard salary level: $684 per week ($35,568 annually) for executive, administrative, and professional exemptions
- Highly compensated employee: $107,432 per year
Critical Update: Lawsuits regarding the 2024 final rule are currently pending in federal district courts, and the United States has filed a notice of appeal. International employers should monitor these developments closely, as changes could significantly impact payroll obligations.
Employee Classification: The Critical Compliance Decision
Proper employee classification represents one of the most complex—and costly—aspects of FLSA compliance. The distinction between exempt and non-exempt employees, as well as employees versus independent contractors, directly impacts your overtime obligations and legal liability.
Exempt vs. Non-Exempt Employees
Non-exempt employees must receive overtime pay for hours worked over 40 in a workweek. Exempt employees are not entitled to overtime pay if they meet specific criteria for executive, administrative, professional, computer, or outside sales exemptions.
To qualify for exemption, employees must generally meet three tests:
- Salary basis test: Paid a predetermined salary not subject to deduction for quality or quantity of work
- Salary level test: Earn at least $684 per week ($35,568 annually)
- Duties test: Perform primarily executive, administrative, or professional duties as defined by regulations
Critical Warning: Job titles alone don’t determine exemption status. Actual job duties control the classification decision.
Real-World Classification Examples
Administrative Exemption: A marketing coordinator who develops advertising strategies, manages vendor relationships, and exercises discretion in campaign decisions would likely qualify. However, a marketing assistant who primarily inputs data and schedules meetings would not.
Professional Exemption: A software engineer designing system architecture and making independent technical decisions qualifies. A programmer following detailed specifications without discretionary authority does not.
“Each classification decision requires careful analysis of actual job duties, not just job descriptions,” notes Jamie Neill, PHR, HR & Client Service Manager at Foothold America. “We regularly see international companies struggle with these distinctions because they’re very different from employment categories in other countries.”
Independent Contractor Classification
The FLSA’s January 2024 rule for determining employee versus independent contractor classification applies a six-factor “economic reality” test:
- Opportunity for profit or loss depending on managerial skill
- Investments by the worker and employer
- Degree of permanence in the work relationship
- Nature and degree of control by the employer
- Extent to which the work performed is integral to the employer’s business
- Skill and initiative required for the work
Misclassification Case Studies and Costs
- Las Vegas drywall contractor: $824,276 in back wages and damages for 680 employees denied overtime pay (Spectrum Construction LLC)
- San Jose electrical engineering company: $1.4 million recovered for over 2,600 employees for improper overtime rates
- Idaho grocery store: $250,833 in civil penalties plus $5,078 in back wages for child labor violations (Swensen’s Magic Markets LLC)
Misclassification of employees as independent contractors can result in significant back pay obligations, penalties, and legal exposure extending beyond just FLSA violations to include tax obligations, workers’ compensation, and benefits.
Child Labor Provisions: Protecting Young Workers
The FLSA’s child labor provisions are designed to protect the educational opportunities of minors and prohibit their employment in jobs and under conditions detrimental to their health or well-being.
Age-Based Restrictions
Age Group | Permitted Work | Hour Restrictions | Prohibited Work |
14-15 years | Non-hazardous jobs, limited occupations | School hours: 3 hrs/day, 18 hrs/week; Non-school: 8 hrs/day, 40 hrs/week | Manufacturing, mining, cooking (except at soda fountain) |
16-17 years | Any non-hazardous occupation | Unlimited hours | 17 hazardous occupations including roofing, excavation, power-driven machinery |
18+ years | No FLSA restrictions | No FLSA restrictions | None under FLSA |
Hazardous Occupations
The Secretary of Labor has identified 17 particularly hazardous occupations prohibited for workers under age 18, including:
- Manufacturing and storing of explosives
- Motor vehicle driving and outside helper
- Coal mining and logging
- Operating power-driven woodworking machines
- Exposure to radioactive substances
- Operating power-driven hoisting apparatus
- Slaughtering, meat-packing, or processing
2024 Child Labor Enforcement Surge
Child labor enforcement has intensified significantly, with the WHD assessing $15.2 million in penalties for child labor violations affecting 4,030 minors in 2024—nearly double the 2023 penalties of $8.0 million.
Recent Case: Alabama poultry processor required to pay $385,000 in civil money penalties and barred from future child labor violations.
Civil Money Penalties: Understanding the Financial Risk
The FLSA authorizes significant civil money penalties, adjusted annually for inflation. Here are the 2025 penalty rates:
Violation Type | 2025 Maximum Penalty | Previous Rate |
Child labor violations | $16,035 per violation | $15,629 |
Serious injury/death from child labor | $72,876 per violation | $71,031 |
Willful or repeated serious injury/death | $145,752 per violation | $142,062 |
Repeated/willful minimum wage/overtime | $2,515 per violation | $2,451 |
Tip pool violations | $1,409 per violation | $1,373 |
Source: DOL Civil Money Penalty Inflation Adjustments
Recordkeeping Requirements: Documentation Obligations
The FLSA mandates that employers maintain accurate records for all non-exempt employees. Required records include:
Required Employment Records
Employee Information:
- Employee’s full name and social security number
- Address and birth date (if under age 19)
- Sex and occupation
Time and Pay Records:
- Time and day when employee’s workweek begins
- Hours worked each day and total hours worked each workweek
- Basis on which employee’s wages are paid
- Regular hourly pay rate and total daily or weekly straight-time earnings
- Total overtime earnings for each workweek
- All additions to or deductions from wages
- Total wages paid each pay period
- Date of payment and pay period covered
Retention Requirements:
- Payroll records: 3 years
- Time cards and wage computation records: 2 years
- Collective bargaining agreements: 3 years
- Sales and purchase records: 3 years
“Accurate recordkeeping is your first line of defense against wage and hour claims,” emphasizes Tiffany Hill, Client Service Administrator at Foothold America. “We’ve seen too many companies face substantial penalties simply because they couldn’t produce required documentation during a DOL investigation.”
2024 FLSA Violation Trends: What the Data Reveals
The Department of Labor’s Wage and Hour Division recovered more than $149.9 million in back wages due to FLSA mistakes for 125,301 workers in fiscal year 2024.
Breakdown by Violation Type (FY 2024)
Violation Category | Back Wages Recovered | Workers Affected | Change from 2023 |
Overtime violations | $126,967,097 | 101,043 | -$3.9M, -5,716 workers |
Minimum wage violations | $15,306,067 | 21,543 | -$5M, -10,000 workers |
Tips violations | $7,410,410 | 10,651 | +$3M, +4,006 workers |
Retaliation violations | $274,956 | 60 | +$105K, same workers |
Source: HRMorning FLSA Report
State Law Interactions: Navigating the Compliance Maze
While the FLSA establishes federal minimums, state laws often provide greater protections. International employers must comply with the most protective applicable law in each jurisdiction.
Common State Law Enhancements
Meal and Rest Breaks: Unlike federal law, many states mandate specific break periods. Here’s a comprehensive breakdown:
State | Meal Break Requirements | Rest Break Requirements | Key Notes |
California | 30 min after 5 hours; 2nd break after 10 hours | 10 min paid break every 4 hours | Most comprehensive laws; penalties for violations |
Colorado | 30 min after 5 consecutive hours | 10 min paid break every 4 hours | Applies to retail, service, food, healthcare |
Connecticut | 30 min for 7.5+ consecutive hours | No requirement | Must be between 2nd and last 2 hours |
Delaware | 30 min for 7.5+ consecutive hours | No requirement | Can be waived in certain situations |
Illinois | 20 min for 7.5+ hours; extra break for 12+ hours | No requirement | Retail establishments only |
Kentucky | “Reasonable” meal period 3-5 hours into shift | No requirement | Coffee/snack time separate from meal |
Maine | 30 min after 6 consecutive hours | No requirement | Only when 3+ employees on duty |
Minnesota | “Sufficient” time for 8+ consecutive hours | “Adequate” paid rest every 4 hours | Must provide restroom breaks |
Nebraska | 30 min for assembly/mechanical establishments | No requirement | Applies to specific industries |
Nevada | 30 min for 8+ consecutive hours | 10 min paid break every 4 hours | 2+ employees required |
New Hampshire | 30 min after 5+ consecutive hours | No requirement | Can eat while working if permitted |
New York | Varies by industry and shift time | No requirement | Complex rules based on work schedules |
North Dakota | 30 min for 5+ hour shifts (if desired) | No requirement | When 2+ employees on duty |
Oregon | 30 min for 6-8 hour shifts | 15 min paid break every 4 hours | Detailed timing requirements |
Rhode Island | 20 min for 6+ hours; 30 min for 8+ hours | No requirement | All employees covered |
Tennessee | 30 min for 6+ consecutive hours | No requirement | Scheduled meal times required |
Vermont | “Reasonable opportunities” to eat | No requirement | General health/hygiene provision |
Washington | 30 min for 5+ consecutive hours | 10 min paid break every 4 hours | Additional break for 3+ overtime hours |
West Virginia | 20 min for 6+ hours | No requirement | All employers covered |
Source: U.S. Department of Labor State Meal Break Laws
Important Notes for International Employers:
- Federal law does not require breaks, but if provided, breaks under 20 minutes must be paid
- Meal breaks (30+ minutes) can be unpaid if employee is completely relieved of duties
- Penalties vary by state – California requires 1 hour of pay for each missed break
- Industry exceptions may apply (healthcare, transportation, etc.)
- Union contracts may provide additional break requirements
Final Pay Timing: State laws often require faster final paycheck distribution than federal requirements:
State | If Terminated/Fired | If Employee Quits | Key Notes |
California | Immediately at termination | Within 72 hours (or immediately with 72+ hours notice) | Unused vacation must be paid out |
Colorado | Immediately | Next regular payday | Weekend/holiday payments allowed by mail |
Massachusetts | Next regular payday | Next regular payday | Saturday if no regular payday |
Illinois | Next payday or within 14 days, whichever is sooner | Next regular payday | Must include earned vacation time |
Minnesota | Next payday or within 24 hours (if requested) | Next payday or within 24 hours (if requested) | Can request immediate payment |
Montana | Immediately | Next payday or within 15 days (whichever sooner) | Different rules for commissioned employees |
Nevada | Immediately | Next payday or within 7 days (whichever sooner) | Penalties for late payment |
New York | Next payday | Next regular payday | Complex rules based on work schedule |
Oregon | End of next business day | Next payday or within 48 hours (with notice) | Penalties: 8 hours pay per day late |
Rhode Island | Next payday | Next regular payday | Must pay earned vacation |
Utah | Within 24 hours | Next regular payday | Excludes weekends/holidays |
Washington | End of next pay period | End of next pay period | Must include accrued vacation |
Texas | Within 6 calendar days | Next regular payday | No weekend/holiday exclusions |
Alaska | Within 3 working days | Next regular payday | Can mail final check |
Arizona | 7 working days or next payday (whichever sooner) | Next regular payday | Vacation payout if in policy |
Federal baseline: Next regularly scheduled payday for all terminations
Paid Sick Leave: Many states and cities mandate paid sick leave (not required under federal law):
State | Accrual Rate | Annual Maximum | Employer Size Requirements | Effective Date |
California | 1 hour per 30 hours worked | 40 hours (5 days) | All employers | Enhanced 2024 |
Washington | 1 hour per 40 hours worked | 40 hours | All employers | 2018 |
New York | Varies by employer size | 40-56 hours | Varies (5+ employees) | 2021 |
Connecticut | 1 hour per 30 hours worked | 40 hours | 25+ employees (as of 2025) | 2012/Enhanced 2025 |
Oregon | 1 hour per 30 hours worked | 40 hours | All employers | 2016 |
Arizona | 1 hour per 30 hours worked | 24-40 hours (by size) | All employers | 2017 |
Maryland | 1 hour per 30 hours worked | 40-64 hours (by size) | 15+ employees | 2018 |
New Jersey | 1 hour per 30 hours worked | 40 hours | All employers | 2018 |
Massachusetts | 1 hour per 30 hours worked | 40 hours | 11+ employees | 2015 |
Colorado | 1 hour per 30 hours worked | 48 hours | All employers | 2021 |
Michigan | 1 hour per 35 hours worked | 40-72 hours (by size) | 10+ employees | 2019/Enhanced 2025 |
Minnesota | 1 hour per 30 hours worked | 48 hours | All employers | 2024 |
Illinois | 1 hour per 40 hours worked | 40 hours | All employers | 2024 |
Maine | 1 hour per 40 hours worked | 40 hours | 10+ employees | 2021 |
Nevada | 0.01923 hours per hour worked | 40 hours | 50+ employees | 2020 |
Rhode Island | 1 hour per 35 hours worked | 40 hours | 18+ employees | 2018 |
Vermont | 1 hour per 52 hours worked | 24-40 hours (by size) | 5+ employees | 2017 |
Alaska | 1 hour per 30 hours worked | 40-56 hours (by size) | All employers | July 1, 2025 |
Missouri | 1 hour per 30 hours worked | 40-56 hours (by size) | All employers | May 1, 2025 |
Nebraska | 1 hour per 30 hours worked | 40-56 hours (by size) | All employers | Oct 1, 2025 |
Sources: Paycor Paid Sick Leave Guide, GovDocs State Laws
Important Compliance Notes:
- Local ordinances in cities like San Francisco, Seattle, and Chicago may have more generous requirements
- Carryover rules vary—most states allow unused hours to roll over to the following year
- Family coverage typically includes spouses, children, parents, and sometimes domestic partners
- Documentation requirements vary, with some states prohibiting employer requests for medical certificates for short absences
“The patchwork of state and local laws creates significant compliance challenges for companies operating in multiple jurisdictions,” explains Robert R. Esquijarosa, Head of Service Implementation at Foothold America. “What many international companies don’t realize is that they need to comply with the most restrictive law that applies to each employee’s work location.”
Best Practices for International Employers
Successfully navigating FLSA compliance requires implementing systematic processes and staying current with evolving regulations. International companies should focus on establishing robust internal systems while leveraging available resources to maintain compliance across all US operations.
Core Compliance Strategies
Employee Classification Management
- Document actual job duties and responsibilities, not just job titles
- Review salary thresholds annually against current DOL requirements
- Conduct regular audits of exempt employee classifications
Learn more about US employee classification requirements
Comprehensive Timekeeping Systems
- Implement automated systems capturing start/end times, breaks, and remote work hours
- Track travel time and waiting periods for non-exempt employees
- Maintain records accessible for DOL inspection as required by FLSA
Explore our comprehensive US payroll tax guide for additional compliance considerations
Multi-State Compliance Management
- Develop matrices showing minimum wage rates, overtime rules, and break requirements for each jurisdiction
- Monitor state-specific final pay timing and sick leave requirements
- Stay updated on local ordinances that may exceed state minimums
Ongoing Legal Updates and Training
- Establish procedures for monitoring regulatory changes through reliable sources:
- Train managers on classification criteria and wage/hour requirements
- Update policies promptly as laws change
“International companies often underestimate the complexity of US employment law compliance,” notes Laurie Spicer, Director of US Expansion at Foothold America. “The investment in proper compliance systems and expert guidance pays for itself many times over by avoiding costly violations and penalties.”
Compliance Technology and Resources
Essential FLSA Compliance Tools
DOL E-tools: The Department of Labor provides free online advisors:
- Coverage and Employment Status Advisor
- Hours Worked Advisor
- Overtime Security Advisor
- Overtime Calculator Advisor
Required Workplace Posters: Employers must display an official poster outlining the requirements of the FLSA. Download current FLSA posters from the Department of Labor.
Staying Current with Changes
Government Resources:
- Federal Register for proposed rules
- DOL Wage and Hour Division News for enforcement updates
- SHRM Legal and Compliance Resources
Conclusion: Building Sustainable US Operations
The Fair Labor Standards Act forms the foundation of US employment law, touching every aspect of your workforce management from hiring to payroll to termination. While the complexity can seem daunting, understanding these requirements is essential for successful US market entry.
The consequences of non-compliance are severe and getting more expensive each year. With $149.9 million in back wages recovered in 2024 alone and penalties reaching $145,752 per violation, the financial risks are substantial. However, companies that invest in proper compliance systems and expert guidance can navigate these requirements successfully while building sustainable, profitable US operations.
Key Takeaways for International Employers
- FLSA compliance is non-negotiable – violations carry severe financial penalties and reputational damage
- State laws often exceed federal requirements – you must comply with the most restrictive applicable law
- Proper employee classification is critical – misclassification errors trigger substantial penalties and back pay obligations
- Accurate recordkeeping is your best defense – maintain detailed documentation for all non-exempt employees
- Professional guidance pays for itself – the cost of compliance is far less than the cost of violations
“The FLSA isn’t just about avoiding penalties—it’s about building a foundation for sustainable growth in the US market,” concludes Joanne M. Farquharson, President and CEO of Foothold America. “Companies that prioritize compliance from day one protect their business, their employees, and their reputation while positioning themselves for long-term success.”
As you expand your international business to the United States, remember that FLSA compliance is an investment in your future success. By understanding these requirements and implementing robust compliance systems, you join the thousands of international companies successfully operating in the world’s largest economy.
Ready to ensure FLSA compliance for your US expansion? Contact Foothold America’s expert team to learn how our comprehensive employment solutions can protect your business while you focus on growth. Explore our US labor law compliance services or read our comprehensive employment guide to learn more about building compliant US operations. Schedule a consultation with our experienced team to discuss your specific expansion needs.
This guide provides general information and should not be considered legal advice. Employment laws vary by jurisdiction and change frequently. For specific compliance guidance, consult with qualified legal counsel or contact Foothold America’s expert team at (617) 702-3402.
Frequently Asked Questions About FLSA Compliance
Get answers to all your questions and take the first step towards a US business expansion.
The FLSA’s overtime regulations require employers to pay non-exempt employees one and one-half times their regular rate of pay for all hours of work exceeding 40 in a workweek. However, certain categories of workers have different requirements. Professional employees and outside sales employees may be exempt from overtime pay requirements if they meet specific salary and duties tests established by the Department of Labor. The employment relationship you establish—whether someone is an employee or independent contractor—also affects overtime obligations. Notably, the Bureau of Labor Statistics tracks compliance trends, and the Monthly Labor Review published research showing that proper classification significantly impacts a small business’s payroll obligations. The Equal Pay Act of 1963 further requires that overtime rates be calculated equally regardless of gender for substantially similar work.
The FLSA’s child labor provisions, championed by Secretary of Labor Frances Perkins during the Roosevelt administration, establish strict protections based on years of age. Workers aged 14-15 face significant restrictions on both the number of hours they can work (3 hours per day during school, 8 hours on non-school days) and the types of jobs permitted. Those aged 16-17 have no federal limits on hours but are prohibited from 17 hazardous occupations. These protections apply regardless of the number of employees a company has. The Supreme Court upheld these provisions, and enforcement has intensified—the Wage and Hour Division assessed $15.2 million in child labor penalties in 2024. The Library of Congress maintains historical records showing how these protections evolved from early 20th-century reform movements led by the American Federation of Labor.
The federal government sets a minimum hourly wage of $7.25 under the FLSA, but the fair minimum wage that actually applies depends on your location. When state and local governments establish higher rates, employers must pay the higher amount. As of 2025, 14 jurisdictions require $15.00 or more per hour, with Washington state leading at $16.66. This system emerged from decades of labor advocacy, with roots in the Public Contracts Act of 1936 (Walsh-Healey Act) that first established minimum wage protections for federal contractors. The Department of Labor publishes a comprehensive fact sheet on state minimum wage laws, updated regularly as rates change. Certain workers like farm workers may have different minimum wage provisions under specialized agricultural exemptions, though most agricultural employers must still comply with FLSA standards.
The FLSA itself does not mandate break time for meals or rest periods, nor does it require health benefits—these are not federal requirements under the Act. However, if an employer provides short breaks (under 20 minutes), those must be paid as hours worked. Many states have enacted their own break requirements that exceed federal standards, creating a complex compliance landscape for multi-state employers. The Social Security Act of 1935, passed alongside early labor reforms, established separate benefit protections outside the FLSA framework. While the FLSA focuses on wages and hours, the broader employment law landscape—including the Affordable Care Act for health benefits and state-mandated paid sick leave—creates additional obligations for employers operating in the United States.
The Department of Labor, through its Wage and Hour Division, provides extensive free resources for understanding FLSA compliance. The Bureau of Labor Statistics tracks enforcement trends and publishes wage data, while the agency’s fact sheet series covers specific topics like overtime exemptions, child labor, and recordkeeping requirements. Employers can access online advisors for determining coverage, calculating overtime, and assessing exempt status. These tools help businesses—from multinational corporations to small business operations—understand their obligations regarding overtime pay requirements, proper classification of employees, and state-specific variations. The federal government also maintains updated workplace posters that must be displayed, and the Library of Congress provides historical context on labor law development, including landmark cases where the Supreme Court interpreted FLSA provisions and the role of labor leaders like Frances Perkins in shaping modern employment protections.
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