Minimum Wage and the Fair Labor Standards Act (FLSA)

The federal minimum wage is the lowest amount employers can compensate hourly workers. The current federal minimum wage is $7.25 per hour. Many states and municipalities have higher minimum wage rates and stronger wage and hour protections.

To understand the minimum wage and overtime laws where you work, contact a local wage and hour lawyer.

Overview of the Fair Labor Standards Act

The federal Fair Labor Standards Act (FLSA) sets a baseline of worker protections in the United States. The FLSA regulates minimum wage rates, overtime pay, child labor standards, and recordkeeping requirements. Under the FLSA, employers must pay hourly workers a minimum wage rate for all hours worked. For work over 40 hours per workweek, employers must pay overtime at 1.5 times the regular rate of pay.

The FLSA also establishes what qualifies as work hours. Employers don’t have to offer break times or meal breaks. However, if employers choose to offer short breaks, that is paid time included in the number of hours of work. Employers don’t need to compensate employees for meal breaks. However, lunch breaks are paid if employees have job duties during the break (like answering phones or staffing a desk).

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Current Minimum Wage Rates

The federal minimum wage rate is $7.25 per hour. This rate went into effect in 2009 and has not increased since.

States and municipalities can establish minimum wage rates that are higher than the federal minimum, and many have. States cannot go below federal minimum wage requirements.

Exceptions to Minimum Wage Laws

FLSA overtime and minimum wage laws apply to most hourly workers and nonexempt employees. However, exempt workers — such as executive, administrative, and professional employees —do not get the same minimum wage and overtime protections.

Exempt workers generally get a salary. However, to be exempt from the FLSA requirements, exempt employees must receive a minimum of $684 per week ($35,568 annual minimum salary threshold).

Independent Contractors and Freelancers

Independent contractors are not employees. The FLSA and most federal labor laws do not apply to contractors. Compensation for independent contractors depends on the individual contract between the company and the contractor. However, some employers misclassify employees as contractors.

Even if you have a work contract describing you as a contractor, it is not necessarily the case. Categorizing workers as contractors or employees depends on several factors. Contractor factors include the worker’s level of independence and ability to work for multiple companies at the same time. If your employer misclassified you as an independent contractor, they may owe you compensation for unpaid minimum wage and overtime hours.

Below Minimum Wage Compensation

Employers can pay some workers below the minimum wage. Subminimum wage exceptions include:

• Workers with disabilities
• Student learners
• Minors and young workers during initial employment periods (first 90 days)
• Tipped employees if tips combined with the lower pay is at least equal to the federal minimum wage

Enforcement of Minimum Wage Laws

The U.S. Department of Labor’s Wage and Hour Division (WHD) enforces FLSA provisions. Workers can file wage complaints with the WHD to report minimum wage violations. The WHD can investigate alleged labor law violations.

The WHD has a few enforcement remedies available. Most compliance actions result in back wages and liquidated damages. The WHD can also assess civil monetary penalties for minimum wage and overtime violations.

The WHD can also file a lawsuit on behalf of employees for back wages, seek a U.S. District Court injunction, or order payment of civil money penalties. For willful and egregious violations, the WHD can take legal action or recommend criminal charges.

Protecting Worker Rights Under FLSA

Before filing a minimum wage claim, you may want to talk to your human resources representative. Underpayment may just involve clerical errors or simple mistakes. If your employer won’t resolve the issues, you can file a claim with your state or federal government agency.

Many workers do not come forward or report minimum wage violations for fear of retaliation. Federal law protects workers against retaliation for reporting minimum wage violations. Employers who retaliate can face a wrongful termination lawsuit.

Find Legal Help

Talk to an employment law attorney about your worker rights and how you can take legal action. Your attorney will explain your legal options and represent you in court. Contact a local wage and hour lawyer for legal advice.