On April 26, 2024, the U.S. Department of Labor (Department) published a final rule, Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees, to update and revise the regulations issued under section 13(a)(1) of the Fair Labor Standards Act implementing the exemption from minimum wage and overtime pay requirements for executive, administrative, and professional employees. Revisions included increases to the standard salary level and the highly compensated employee total annual compensation threshold, and a mechanism for updating these earnings thresholds to reflect current earnings data. On November 15, 2024, the U.S. District Court for the Eastern District of Texas vacated the Department’s 2024 final rule. Consequently, with regard to enforcement, the Department is applying the 2019 rule’s minimum salary level of $684 per week and total annual compensation requirement for highly compensated employees of $107,432 per year. Lawsuits regarding the 2024 final rule are currently pending in two other federal district courts, and the United States has filed a notice of appeal from the November 15 decision. The Department will update this notice with additional information as it becomes available.
The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments. Covered nonexempt workers are entitled to a minimum wage of not less than $7.25 per hour effective July 24, 2009. Overtime pay at a rate not less than one and one-half times the regular rate of pay is required after 40 hours of work in a workweek.
- FLSA Minimum Wage: The federal minimum wage is $7.25 per hour effective July 24, 2009. Many states also have minimum wage laws. In cases where an employee is subject to both state and federal minimum wage laws, the employee is entitled to the higher minimum wage.
- FLSA Overtime: Covered nonexempt employees must receive overtime pay for hours worked over 40 per workweek (any fixed and regularly recurring period of 168 hours – seven consecutive 24-hour periods) at a rate not less than one and one-half times the regular rate of pay. There is no limit on the number of hours employees 16 years or older may work in any workweek. The FLSA does not require overtime pay for work on weekends, holidays, or regular days of rest, unless overtime is worked on such days.
- FLSA Tip Regulations: The FLSA allows employers who meet certain criteria to take a partial credit against their minimum wage obligations for tipped employees—those engaged in an occupation in which they customarily and regularly receive tips.
- Hours Worked: Hours worked ordinarily include all the time during which an employee is required to be on the employer’s premises, on duty, or at a prescribed workplace.
- Recordkeeping: Employers must display an official poster outlining the requirements of the FLSA. Employers must also keep employee time and pay records.
- Child Labor: These provisions are designed to protect the educational opportunities of minors and prohibit their employment in jobs and under conditions detrimental to their health or well-being.
On January 10, 2024, the U.S. Department of Labor published a final rule Employee or Independent Contractor Classification Under the Fair Labor Standards Act, effective March 11, 2024, revising the Department’s guidance on how to analyze who is an employee or independent contractor under the Fair Labor Standards Act (FLSA). This final rule rescinds the Independent Contractor Status Under the Fair Labor Standards Act rule (2021 IC Rule, 86 FR 1168), that was published on January 7, 2021. This guidance will be updated.
General Guidance
- Handy Reference Guide to the FLSA
- Fact Sheets
- Employment Law Guide: Minimum Wage and Overtime Pay
- Questions and Answers about the FLSA
- Information on Furloughs and Other Reductions in Pay
- Break Time for Nursing Mothers
- 'How to File a Complaint' Card (PDF)
- FLSA Resources for Puerto Rico
- Misclassification of Employees as Independent Contractors
- Minimum Wage and Overtime Pay for Direct Care Workers
- Holiday Season Employment Information
- COVID-19 or Other Public Health Emergencies and the FLSA
Posters
Interpretive Guidance
E-tools
- The Coverage and Employment Status Advisor helps identify which workers are employees covered by the FLSA.
- The Hours Worked Advisor provides information to help determine which hours spent in work-related activities are considered FLSA “hours worked” and therefore must be paid.
- The Overtime Security Advisor helps determine which employees are exempt from the FLSA minimum wage and overtime pay requirements under the Part 541 overtime regulations.
- The Overtime Calculator Advisor computes the amount of overtime pay due in a sample pay period based on information from the user.
- The Child Labor Rules Advisor answers questions about the FLSA’s youth employment provisions, including at what age young people can work and the jobs they can perform.
- The Section 14(c) Advisor helps users understand the special minimum wage requirements for workers with disabilities.
Presentations
- Comprehensive FLSA Presentation (Microsoft PowerPoint)
- Executive, Administrative, and Professional Exemption Presentation (Microsoft PowerPoint)
Applicable Laws and Regulations
Law
Regulations
Civil Money Penalty Inflation Adjustments
Starting in 2016, agencies across the federal government must adjust their penalties for inflation each year. Below is a table that reflects the adjustments that have occurred for penalties under this statute. For more information on the penalty adjustments, go here.
| Type of Violation | Statutory Citation | CFR Citation | Maximum Civil Monetary Penalty on or before 1/15/2024 | Maximum Civil Monetary Penalty on or after 1/16/2024 |
|---|---|---|---|---|
| Homeworker: Violation of recordkeeping, monetary, certificate or other statutes, regulations or employer assurances. | 29 USC 211(d) | 29 CFR 530.302 | $1,240 | $1,280 |
| Child labor: (1) Violation of child labor standards (sec 212 or 213(c)); | 29 USC 216(e)(1)(A)(i) | 29 CFR 570.140(b)(1) and 29 CFR 579.1(a)(1)(i)(A) | $15,138 | $15,629 |
| (2) Violation of child labor standards (sec 212 or 213(c)) that causes the serious injury or death of a minor; | 29 USC 216(e)(1)(A)(ii) | 29 CFR 570.140(b)(2) and 29 CFR 579.1(a)(1)(i)(B) | $68,801 | $71,031 |
| (3) Willful or repeated violation of child labor standards (sec 212 or 213(c)) that causes the serious injury or death of a minor | 29 USC 216(e)(1)(A)(ii) | 29 CFR 570.140(b)(2) and 29 CFR 579.1(a)(1)(i)(B) | $137,602 | $142,062 |
| (4) Repeated or willful violation of section 206 or 207. | 29 USC 216(e) | 29 CFR 579.1(a)(2) | $2,374 | $2,451 |
| (5) Violation of section 203(m)(2)(B) | 29 USC 216(e)(2) | 29 CFR 579.1(a)(2)(ii) and 29 CFR 578.3(a)(1) | $1,330 | $1,373 |