FLSA Status

Meaning & Definition

The FLSA Status (Fair Labour Standards Act) is a federal statute that regulates employers’ obligations regarding employee compensation in the U.S. Employment classification under the FLSA establishes an employee’s exemption from minimum wage and overtime protection. Employees classified as exempt under the FLSA do not receive overtime pay; however, employees classified as nonexempt are eligible for overtime pay and the minimum wage protection afforded by the FLSA.

Important features of FLSA Status

• Promoting compliance with wage laws.
• Determining overtime eligibility.
• Impacting payroll processing and salary.
• Prevent employer misclassification risk. 
• Support equitable compensation and protect it legally. 
• Essential to global HR teams operating in the U.S.

Governance & Compliance

The Fair Labour Standards Act (FLSA) governs employees in America is administered by the U.S. Department of Labour (DOL) and sets criteria for employees, whether they are classed as Exempt or Non-exempt (based on job duties and salary). Wage regulations do not exist under labour law in India; however, similar principles do exist.