{"id":1104763,"date":"2026-02-27T11:32:07","date_gmt":"2026-02-27T17:32:07","guid":{"rendered":"https:\/\/runahr.com\/?p=1104763"},"modified":"2026-03-06T12:00:46","modified_gmt":"2026-03-06T18:00:46","slug":"fair-labor-standards-act","status":"publish","type":"post","link":"https:\/\/runahr.com\/en\/recursos\/human-resources\/fair-labor-standards-act\/","title":{"rendered":"Fair Labor Standards Act (FLSA): What is it?"},"content":{"rendered":"

Picture this: a small business owner just got called out for not paying someone overtime. Or maybe an HR lead\u2019s staring at a spreadsheet asking, \u201cWait\u2026 do interns count as employees?\u201d Stuff like this happens more than you\u2019d think\u2014and it all traces back to one thing: the Fair Labor Standards Act (FLSA).<\/span><\/p>\n

This law\u2019s been kickin\u2019 around since 1938, but it still runs the show when it comes to wages, overtime, child labor, and recordkeeping. The Department of Labor\u2019s Wage and Hour Division keeps it in check. Whether you\u2019re managing a team of five or five hundred, this law lowkey shapes everything.<\/span><\/p>\n

It doesn't just keep things legal\u2014it sets the tone for what fair work\u2019s supposed to look like. And when you mess it up (even accidentally), you\u2019re lookin\u2019 at fines, lawsuits, maybe even some IRS attention. So yeah\u2014it\u2019s worth gettin\u2019 right.<\/span><\/p>\n

What is the Fair Labor Standards Act (FLSA)?<\/b><\/h2>\n

The FLSA is the rulebook behind all those work laws people kinda know but don\u2019t totally understand. It\u2019s what makes sure people get paid at least <\/span>minimum wage<\/span><\/a>, overtime happens when it should, and teens aren\u2019t out here running forklifts. It also covers stuff like tracking hours and keeping clean records.<\/span><\/p>\n

Although enacted decades ago, the FLSA remains fully in effect and continues to play a critical role in workforce compliance. For organizations operating across multiple states, the FLSA directly impacts daily decisions related to timekeeping practices, job classification, overtime eligibility, and <\/span>compensation<\/span><\/a> structure. Failure to comply can result in significant financial penalties and legal exposure, whereas a clear understanding of its requirements supports sound operational and risk management practices.<\/span><\/p>\n

What does FLSA state about minimum wage?<\/b><\/h2>\n

So the FLSA says the federal minimum wage is $7.25\/hour, which honestly sounds wild now\u2014but it\u2019s still the baseline. States usually go higher. For example, if you got tipped workers, their base pay can drop to $2.13\/hour\u2014as long as tips push them over that $7.25 mark.<\/span><\/p>\n

Also, teens under 20 can get paid $4.25\/hour for their first 90 days. That\u2019s legal too. But don\u2019t forget\u2014you gotta post the right wage posters at your workplace (both federal and state). HR\u2019s gotta stay on top of all that to avoid getting fined.<\/span><\/p>\n

How does FLSA manage overtime pay?<\/b><\/h2>\n

Here\u2019s where companies slip. If you\u2019ve got non-exempt employees working over 40 hours a week, they need 1.5x their regular rate for every extra hour. That includes base pay, yes\u2014but also bonuses and incentives.<\/span><\/p>\n

Some organizations use the fluctuating workweek method for salaried employees with variable schedules. That\u2019s allowed, but it gets real complicated. Missteps there can quickly turn into wage disputes or <\/span>remuneration<\/span><\/a> lawsuits. Best advice? Track hours tight, run regular audits, and don\u2019t cut corners.\u00a0<\/span><\/p>\n

What does the FLSA say about teens on payroll?<\/b><\/h2>\n

Teen workers are cool\u2014just don\u2019t push it. The FLSA has strict rules. If they\u2019re 14\u201315, they can only work limited hours outside school. If they\u2019re 16\u201317, no hazardous jobs. That means no ovens, no heavy gear, and definitely no sketchy chemicals.<\/span><\/p>\n

You gotta track their hours carefully and verify their age. Skip that, and it\u2019s not just fines\u2014you risk getting dragged publicly too. <\/span>HR<\/span><\/a> should bake all this into <\/span>onboarding<\/span><\/a> so nobody forgets the rules.<\/span><\/p>\n

Why is recordkeeping necessary for the FLSA?<\/b><\/h2>\n

When it comes to the FLSA, pay compliance isn\u2019t just about cutting the right check. It\u2019s about being able to prove\u2014clearly and quickly\u2014that wages were calculated correctly. That\u2019s where recordkeeping becomes non-negotiable.<\/span><\/p>\n

Employers are required to retain <\/span>payroll<\/span><\/a> records for at least two to three years, depending on the document type. It doesn\u2019t matter whether those records live in a cloud-based <\/span>Human Resources Information System (HRIS)<\/span><\/a> or in paper files in a storage room. What matters is accuracy, completeness, and accessibility. If the Department of Labor initiates an audit, those records are the primary line of defense. Without them, even well-intentioned pay practices can become difficult to defend.<\/span><\/p>\n

The FLSA isn\u2019t only about paying employees properly; it\u2019s about demonstrating compliance. That means maintaining clear documentation on:<\/span><\/p>\n