The Fair Labor Standards Act (FLSA) is a federal law enforced by the Department of Labor (DOL) that establishes minimum wage, overtime pay, record keeping, and youth employment standards for employers. The law was first enacted to protect the rights of employees, particularly as it relates to fair pay practices.
Among other requirements, employees who are considered exempt from the overtime provisions of the law must be paid a salary that meets the FLSA salary threshold requirement. Nonexempt employees must be paid the FLSA minimum wage and are eligible for overtime pay.
Nonexempt employees are entitled to overtime pay (or compensatory time in the public sector) at 1.5 times the employee's regular rate of pay for hours worked over 40 in a workweek. A limited category of positions, such as those whose primary duties involve teaching are not required to meet the salary minimum and will continue to be considered exempt.
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