Fair Labor Standards Act

Definition

The Fair Labor Standards Act (FLSA) is a federal law that establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in federal, state, and local governments. It is a key piece of legislation that impacts human resource management and compliance within organizations.

5 Must Know Facts For Your Next Test

1. The FLSA was enacted in 1938 as part of President Franklin D. Roosevelt's New Deal legislation to establish basic labor protections and standards.
2. The FLSA applies to employees of enterprises engaged in interstate commerce or in the production of goods for commerce, as well as certain government employees.
3. The FLSA sets the federal minimum wage, which is currently $7.25 per hour and has remained unchanged since 2009.
4. The FLSA requires employers to pay non-exempt employees overtime pay at a rate of 1.5 times their regular hourly rate for any hours worked over 40 in a workweek.
5. The FLSA includes provisions to restrict the employment of minors in hazardous occupations and limits the number of hours they can work.

Review Questions

• Explain how the Fair Labor Standards Act relates to the introduction of human resource management and its role in ensuring compliance within organizations.
  • The Fair Labor Standards Act (FLSA) is a crucial piece of legislation that directly impacts the human resource management function within organizations. As part of the introductory chapter on human resource management, the FLSA is an important topic because it establishes federal standards for minimum wage, overtime pay, and child labor laws that all employers must comply with. HR professionals are responsible for ensuring the organization adheres to these FLSA requirements, which are designed to protect workers' rights and promote fair labor practices. Failure to comply with the FLSA can result in significant penalties and legal consequences for the organization, making it a key area of focus for HR management and compliance.
• Describe how the provisions of the Fair Labor Standards Act, such as minimum wage and overtime pay, influence human resource management and compliance within an organization.
  • The Fair Labor Standards Act's provisions on minimum wage and overtime pay have a direct impact on human resource management and compliance within organizations. HR professionals must ensure that all employees are paid at least the federal minimum wage, which is currently $7.25 per hour. They must also track and properly compensate non-exempt employees for any overtime hours worked beyond 40 in a workweek, paying them 1.5 times their regular hourly rate. Failure to comply with these FLSA requirements can lead to costly lawsuits, fines, and reputational damage for the organization. As a result, HR teams must develop robust policies, procedures, and record-keeping systems to monitor and enforce FLSA compliance, making it a critical aspect of effective human resource management.
• Analyze how the child labor laws within the Fair Labor Standards Act influence the human resource management function and an organization's overall compliance efforts.
  • The child labor provisions of the Fair Labor Standards Act significantly impact the human resource management function and an organization's compliance efforts. HR professionals must ensure that the organization strictly adheres to the FLSA's restrictions on the employment of minors, including limits on the types of jobs they can perform and the number of hours they can work. Failure to comply with these child labor laws can result in hefty fines and penalties, as well as reputational damage for the organization. As part of their compliance responsibilities, HR teams must develop and implement robust policies, procedures, and training programs to educate managers and employees on the FLSA's child labor requirements. This ensures that the organization maintains a safe and legally compliant work environment for all employees, including minors. Effectively managing child labor compliance is a critical aspect of the HR function and contributes to the overall success of the organization's compliance efforts.

Related terms

Minimum Wage:

The lowest hourly rate that employers can legally pay their workers, as established by the FLSA.

Overtime Pay:

The requirement for employers to pay employees 1.5 times their regular hourly rate for any hours worked over 40 in a workweek, as mandated by the FLSA.

Child Labor Laws: Regulations within the FLSA that restrict the employment of minors and set limits on the types of jobs and number of hours they can work.