The Fair Labor Standards Act ("FLSA") is the federal law that establishes the minimum wage, overtime pay, and recordkeeping.  There are also state and local laws that govern how employees are paid.  The Wage and Hour Division (WHD) of the U.S. Department of Labor (DOL) administers and enforces the FLSA with respect to private employment.

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Under the FLSA, covered, nonexempt workers of private employers are entitled to a minimum wage of $7.25 per hour.  Nonexempt workers must be paid overtime pay at a rate of not less than one and one-half times their regular rates of pay after 40 hours of work in a workweek.  Deductions from these wages for things such as employer-required uniforms, tools, or cash or merchandise shortages are not legal to the extent that they reduce the wages of employees below the minimum rate required by the FLSA or reduce the amount of overtime pay due under the FLSA.  

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Some employees are exempt from the overtime pay provisions of the FLSA.  For example, executive, administrative and professional employees, outside sales employees, farmworkers, and employees in certain computer-related occupations are exempt to the extent they meet specific criteria under the FLSA.

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The FLSA is an incredibly complex statute that is difficult to navigate.  Examples of FLSA violations include:

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• Working off-the-clock

• Misclassifying employees as either exempt or non-exempt

• Docking hours of an exempt employee

• Failure to pay minimum wage

• Unpaid overtime

• Tip credit issues

• Classifying employees as independent contractors

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Under the FLSA, employees must typically file their lawsuit within two years of the date of the employer's wage violation (the statute of limitations is extended to three years if the violation was willful).  If the wage violation is ongoing, the employee will only be allowed to recover unpaid wages for the two-year period prior to the filing of the claim.  Therefore, it is important to consult an attorney quickly.   Lee Law Firm has significant experience handling FLSA claims.  Please contact us for a free attorney consultation.

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