Quick facts
- Administered by the U.S. Department of Labor, Wage and Hour Division.
- Federal minimum wage: $7.25 per hour, effective July 24, 2009 (check the source for any change).
- Overtime: covered nonexempt employees must receive overtime pay for hours worked over 40 in a workweek, at not less than one and one-half times the regular rate of pay.
- Employers must keep time and pay records and display the official FLSA poster.
What it means in practice
The FLSA is the baseline wage-and-hour law for most U.S. employers. It does four main things: it sets a minimum hourly wage, it requires overtime pay for covered employees who work more than 40 hours in a workweek, it requires employers to keep certain records, and it limits the work minors may do. The U.S. Department of Labor says the law affects employees in the private sector and in federal, state and local governments.
Not every worker and every business is covered in the same way. The Department of Labor explains that coverage can come from the business or from the individual job. "Enterprise coverage" applies, among other tests, to a business with an annual dollar volume of sales or business done of at least $500,000. "Individual coverage" can apply to a worker whose work regularly involves commerce between states, even if the business as a whole is not covered. Because coverage turns on facts about your business and each role, use the Department of Labor's coverage guidance rather than assuming you are in or out.
The minimum wage and overtime rules apply to "nonexempt" employees. Some employees are exempt from one or both requirements, but exempt status depends on how an employee is paid and what the employee actually does, not on a job title. See our explanation of exempt vs. non-exempt employees for the details, and our minimum wage entry for the wage floor.
Overtime under the FLSA is tied to the workweek, not to a particular day. The Department of Labor notes that the FLSA does not require overtime pay for work on Saturdays, Sundays, holidays or regular days of rest unless overtime is actually worked on those days, and that it sets no limit on the number of hours employees 16 or older may work in a workweek.
Federal and state law. The FLSA is a floor, not a ceiling. The Department of Labor states that some state laws provide greater employee protections and that employers must comply with both. In practice, where a state sets a higher standard than the FLSA, the more protective standard governs for employees covered by both.
Why it matters and common mistakes
Records are a frequent trouble spot. The Department of Labor's recordkeeping fact sheet says employers must preserve payroll records for at least three years, and that supporting wage-computation records such as time cards should be retained for two years. For each nonexempt worker the required information includes hours worked each day, total hours each workweek, the regular hourly rate and total overtime earnings.
Another common mistake is misclassification. The Department of Labor describes misclassification as treating a worker who is an employee under the FLSA as an independent contractor, and says employers are responsible for determining whether a worker is an employee. Treating an employee as exempt without meeting the exemption requirements is a related error. Because penalties and back-pay exposure depend on the facts, confirm the current figures and rules with the Department of Labor or a qualified professional.
How Remindax helps
Remindax helps you track the dates and deadlines tied to FLSA recordkeeping and poster-review requirements and sends reminders before they're due. Remindax does not provide legal, tax, or HR advisory services, and this page is for general informational purposes only - consult a qualified attorney, accountant, or HR professional for guidance specific to your situation.
Related terms
- Exempt vs. non-exempt employees
- Minimum wage
- Americans with Disabilities Act (ADA)
- Workers' compensation
See all terms in Employment Law & Compliance.
Sources & References
- U.S. Department of Labor - Fair Labor Standards Act - what the FLSA covers: minimum wage, overtime, recordkeeping, youth employment
- DOL Fact Sheet #14 - Coverage Under the FLSA - enterprise and individual coverage
- DOL Overtime Pay - overtime for hours over 40 in a workweek; no overtime requirement for weekends or holidays as such
- DOL Fact Sheet #21 - Recordkeeping Requirements - record retention periods and required records
- DOL Misclassification of Employees as Independent Contractors - definition of misclassification
- DOL Minimum Wage - federal minimum wage and compliance with state law
Last reviewed: October 2026. Figures are reviewed annually - see Sources & References for current figures.