Jobs Governed by Fair Labor Standards Act (FLSA)

The Fair Labor Standards Act is a federal statute of the U.S. that guarantees a national minimum wage, extra pay for overtime in certain jobs, and protection against “oppressive child labor”.  Generally, any employer who has sales or business of over $500,000 a year meets the commerce requirements of the FLSA.  This means they must meet the minimum wage, overtime, and record-keeping requirements.  There are five white collor exemptions to meeting these requirements.

However, certain jobs by definition are exempt from the FLSA, such as agricultural workers and employees in movie theaters.  Some jobs are governed by another specific labor law.  For example, railroad workers are governed by the Railway Labor Act and truck drivers by the Motor Carriers Act.  To be exempt from the FLSA, an employee must be paid at least $23,600 a year on a salary basis and also perform exempt job duties, such as executive and administrative actions.  

Exempt employees gain nothing from FLSA overtime rules. The only thing they are entitled to is getting full pay for a work period when they perform any work.  They will not receive overtime compensation or time off.  Nonexempt employees are entitled to 1.5 times their pay ratio for overtime work.  Any vacation or sick leave time is recorded to the nearest quarter hour. 

You can find more information about who is exempted and what benefits they are entitled to under the FLSA by visiting the Fair Labor Standards Act Advisor.

Laws on this topic may vary from state to state. This content is not meant to provide you with complete information and it is not intended to be legal or tax advice. It is recommended that you consult with your own attorney, accountant or other advisor regarding your specific situation.