The U.S. Department of Labor (DOL) established the Fair Labor Standards Act (FLSA) to ensure employees receive the proper amount of pay for the work they perform and are guaranteed a safe environment. Children under a certain age are not allowed to use hazardous machinery or perform labor that cuts into school attendance. Adults are guaranteed at least minimum wage for all of their hours worked and overtime pay if they spend more than 40 hours week on the job.
According to the DOL, overtime pay is one-and-a-half times the regular pay rate and minimum wage is currently set at $7.25 per hour. However, there are other states that have increased those basic standards to reflect local costs of living.
This is great news for workers in those states, especially those in low-paying industries that often rely on paychecks to cover basic living expenses, but this can be problematic for employers who are uncertain about which labor laws apply to their companies.
For instance, there are 19 states that require employers pay more than federal minimum wage. Washington is the highest at $9.04 per hour.
To ensure businesses are paying employees the proper amount, employers might want to install payroll processing software that calculates the correct earnings per position.
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