Understanding FLSA minimum wage provisions

The Fair Labor Standards Act (FLSA) was established to set guidelines for minimum wage, overtime pay, time attendance recordkeeping and child labor standards that are applicable for full- and part-time employees across the private sector and federal, state and local government agencies.

Effective July 24, 2009, the federal minimum wage is $7.25 per hour. Violations of FLSA laws are subject to investigation and enforcement by the Wage and Hour Division of the U.S. Labor Department. Employees that fall under both federal and state minimum wage laws are entitled to receive the higher rate of pay.

Exceptions apply only to tipped employees, full-time students, workers with disabilities, youth under the age of 20 during the first 90 days of employment and student-learners. Employers that obtain a sub-minimum wage certificate from the Department of Labor are responsible for paying student-workers at least 75 percent of minimum wage and full-time students at least 85 percent.

The FLSA, however, does not require employers to offer vacation, holiday, sick or severance pay; meal or rest periods; holidays off or vacation pay; pay raises or fringe benefits; increased pay for weekends or holidays or a discharge notice, reason for discharge or immediate pay of final wages to terminated employees. 

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