FLSA - Fair Labor Standards Act
The Fair Labor Standards Act of 1938 establishes minimum wage, overtime pay, record keeping and child labor standards for nearly all full-and-part-time workers in the United States. Employers also must comply with any state laws dealing with days of rest, equal pay, minimum wage and child labor provided that such laws are more favorable to employees than the FLSA.
Under the FLSA, covered (nonexempt) employees must receive at least minimum wage for all hours worked during a workweek, and also must be paid overtime compensation (equal to no less than one and one-half their regular rate of pay) for all work hours in excess of 40 each workweek. The FLSA does not mandate any particular form of timekeeping for employee work hours provided that the records accurately reflect the time worked. However, failure to keep accurate time records or certain personal data or employees is a violation of the FLSA. Such omissions can also expose an employer to significant liability to terminated or disgruntled employees.
Listed below are methods which FLSA provides for recovering unpaid minimum and/or overtime wage:
- Wage-Hour may supervise payment of back wages.
- The Secretary of Labor may bring suit for back wages and an equal amount as liquidated damages.
- An employee may file a private suit for back wages and an equal amount as liquidated damages, plus attorney's fees and court costs.
- The Secretary of Labor may obtain an injunction to restrain any person from violating FLSA, including the unlawful withholding of proper minimum wage and overtime pay.
An employee may not bring suit if he or she has been paid back wages under the supervision of Wage-Hour or if the Secretary of Labor has already filed suit to recover the wages. A 2-year statute of limitations applies to the recovery of back pay, except in the case of willful violation, in which case a 3-year statute applies.
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