Keeping up with employment laws can feel overwhelming—especially when regulations are detailed, constantly evolving, and carry serious penalties for noncompliance. At Helpside, a professional employer organization (PEO) that supports businesses with HR compliance and payroll, we help employers navigate complex regulations like the Fair Labor Standards Act (FLSA). This federal law establishes requirements related to wages, overtime pay, recordkeeping, and child labor. Understanding the basics of the FLSA is essential to protecting your business and maintaining compliance.

Below are the most important things employers should know about the FLSA.

Minimum Wage

Minimum wage is the lowest hourly rate an employee can legally be paid. While the federal minimum wage is currently $7.25 per hour, many states have established higher minimum wages. Employers are required to follow the higher standard when state and federal laws differ.

Failing to apply the correct minimum wage can result in back pay obligations, penalties, and increased scrutiny from regulators. Employers should regularly review wage requirements to ensure compliance.

Overtime

Overtime pay applies to non-exempt employees who work more than 40 hours in a single workweek. Under the FLSA, overtime must be paid at one and one-half times the employee’s regular rate of pay.

Not all employees are eligible for overtime, which makes proper classification critical. Misclassifying employees as exempt when they should be non-exempt is a common compliance issue and can lead to costly violations. Employers should clearly understand the difference between exempt and non-exempt roles to stay compliant.

Hours Worked

The FLSA requires employers to accurately track and record all hours worked by employees. This includes more than just scheduled shifts. Time spent waiting to work, on-call time, rest periods, and other work-related activities may count as compensable time depending on the circumstances.

Proper timekeeping and payroll recordkeeping are essential to compliance. Employers should ensure their systems and processes align with FLSA guidelines to avoid wage disputes and penalties.

Child Labor

The FLSA also includes child labor regulations designed to protect minors in the workplace. These laws restrict the types of work minors can perform, the number of hours they can work, and the conditions under which they may be employed. Requirements vary based on the minor’s age, industry, and applicable state laws.

Employers who hire minors should stay up to date on both federal and state child labor laws to ensure compliance and avoid violations.

Staying Compliant

FLSA compliance is critical to your company’s success. From proper wage payment to accurate time tracking and employee classification, understanding and following the law helps protect your business and your employees.

Are you confident your wage, overtime, and recordkeeping practices are fully compliant with the FLSA?
Call Helpside today for your Free 15-Minute Benefits Audit: 1-800-748-5102

Further Reading:

Calculating the Regular Wage Rate Under the FLSA

How to Reduce Employee Overtime

Staying Compliant: A PEO Checklist for Avoiding Costly Fines