The U.S. Department of Labor enforces the Fair Labor Standards Act (FLSA), which sets basic minimum wage and overtime pay standards. These standards are enforced by the Department's Wage and Hour Division.
The federal minimum wage is $7.25 per hour for workers covered by the FLSA.
Many states also have minimum wage laws. In cases where an employee is subject to both the state and federal minimum wage laws, the employee is entitled to the higher of the two minimum wages. Find the minimum wage in your state.
Overtime pay of not less than one and one-half times the regular rate of pay is required after 40 hours of work in a workweek. Certain exemptions apply to specific types of businesses or specific types of work.
While the FLSA does set the minimum wage for certain workers, it does not, however, require any of the following:
The FLSA does not address nonproduction cash bonuses, payments that are not production-based. These bonuses are generally a matter of agreement between an employer and an employee (or the employee's representative).
Benefits such as educational assistance, life insurance, or travel accident insurance are generally a matter of agreement between an employer and an employee (or the employee's representative).
In addition to the FLSA, the Wage and Hour Division enforces other labor laws related to wage payment. Among these are:
A user-friendly Handy Reference Guide to the Fair Labor Standards Act provides American employers and workers with labor law information.