The Fair Labor Standards Act (FLSA) was put in place to ensure employees were paid correctly for their time and attendance. It established minimum wage standards, recordkeeping requirements and rights to overtime if employees worked more than 40 hours in a week. Additionally, the FLSA introduced protocol for posting certain documents in the workplace. These include lists of employees' rights and information about paydays.

Employers are required to set up a standard pay system that ensure employees receive wages on a routine basis. This may seem like a given to employees, who are performing work only so they can earn money, but struggling employers may find it difficult to provide these payments when cash flow is limited.

To avoid accruing even more expenses as the result of FLSA violations, businesses should make sure to issue paychecks on schedule. The Department of Labor mandates employers must pay workers minimum wage and overtime on the regular pay day. If they fail to do so, the Secretary of Labor can file a claim to recover back wages or launch a suit against the employer in question to discourage future violations.

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