Fair Labour Standards Act

Meaning & Definition

The Fair Labour Standards Act (FLSA) is a law in the USA that sets standards for minimum wage, overtime, recordkeeping, and child labour to be complied with by both private and government employers. It aims to provide fair pay while preventing the exploitation of workers.

Importance of the Fair Labour Standards Act

• Sets a minimum wage for the employees who are eligible.
• Establishes the process for paying employees overtime for hours worked outside of normal hours.
• Protects children from child labour laws that govern their employment.
• Provides employees with fair and equal pay when any employee works for an employer.
• Encourages companies to provide a transparent way for employees to review their pay and time records.

Compliance & Policy Considerations 

The Fair Labour Standards Act regulates labour laws regarding pay and hours specifically in the U.S.

Employers are required to do the following:

• Must pay the federal minimum wage, along with applicable overtime rates.
• Keep an accurate record of employee hours worked and their payroll records.
• Employers must abide by child labour laws with exceptions to the child labour law as required by law.

(Note: This law is specific to the United States and does NOT apply to Indian labour law.)