Minimum Wages

Fair Labor Standards Act (FLSA)

The Fair Labor Standards Act (FLSA) covers all employees of certain enterprises involved in interstate commerce, including those producing goods for interstate commerce or handling materials moved in such commerce.

Mandated Wages

Wages mandated by the FLSA must be paid on the regular payday for the corresponding pay period. Deductions from wages for items such as cash shortages, employer-mandated uniforms, or tools cannot reduce wages below the FLSA minimum or diminish owed overtime pay.

Even employees of firms not covered under the FLSA may still be subject to its minimum wage, overtime pay, recordkeeping, and child labor provisions if they engage in interstate commerce or closely related activities.

Tipped Employees

Tipped employees, defined as those customarily receiving over $30 per month in tips, may have their tips considered as part of their wages, but employers must pay at least $2.13 per hour in direct wages.

Record Keeping

Employers must maintain records on wages, hours, and other specified items as outlined in Department of Labor (DOL) regulations. These records, while not required to be in any specific format, should cover typical business practices and comply with relevant laws.

Overtime Pay

Overtime pay must be at least one and a half times the employee's regular rate of pay for hours worked beyond the maximum allowable in a given employment type. The regular rate encompasses all payments made by the employer to or on behalf of the employee, with certain statutory exclusions.

Nonexempt workers must receive overtime pay at a rate of no less than one and a half times their regular rate of pay for hours worked beyond 40 in a workweek.