Is the Fair Labor Standards Act still around today?
Yes—the Fair Labor Standards Act (FLSA) is still around today, and it remains one of the most enforced federal employment laws in the United States. If you’re an HR professional or business owner trying to confirm whether the FLSA still applies (and what you must do to comply), the answer is clear: the FLSA continues to govern minimum wage, overtime, recordkeeping, child labor rules, and posting requirements for covered employers.
This guide explains the fair labor standards act impact on modern workplaces, what has changed over time, and the concrete compliance steps SwiftSDS recommends to reduce Wage and Hour Division (WHD) risk.
What the FLSA does today (and why it still matters)
The FLSA (29 U.S.C. § 201 et seq.) is enforced by the U.S. Department of Labor’s Wage and Hour Division and sets baseline nationwide requirements for:
- Minimum wage (federal floor)
- Overtime pay
- Child labor restrictions
- Recordkeeping
- Workplace posting of employee rights
Even as states and cities have raised wages or expanded protections, the FLSA remains the foundation. For broader context on how the FLSA fits into other federal requirements, see SwiftSDS’s hub on employment law topics and the broader employment legislation list.
Who is covered: enterprise vs. individual coverage
A frequent compliance question isn’t whether the fair labor standards act still around today—it’s whether your business is covered.
Enterprise coverage
Many employers are covered if they have:
- At least $500,000 in annual gross volume of sales/business, and
- At least two employees, and
- The business is engaged in interstate commerce (broadly interpreted—e.g., ordering supplies from out of state, using interstate banking, shipping across state lines).
Individual coverage
Even if the company does not meet enterprise coverage, an employee may still be covered individually if their work regularly involves interstate commerce (shipping, calls across state lines, processing credit card transactions, etc.).
Action step: If you are unsure, assume coverage until counsel confirms otherwise—WHD investigations often begin with misclassification or overtime complaints.
The modern “fair labor standards act impact” on pay practices
Minimum wage: federal vs. state and local
The FLSA establishes a federal minimum wage floor. Many jurisdictions require a higher wage; where laws conflict, employers must generally follow the rule that is more protective of employees.
Action step: Build payroll rules to apply:
- the highest applicable minimum wage (federal/state/local), and
- the most protective overtime rules (some states are stricter than federal).
To stay current on changing state requirements, monitor employment law updates.
Overtime: the most common compliance exposure
Under the FLSA, non-exempt employees generally must receive overtime pay at 1.5× the regular rate for all hours worked over 40 in a workweek.
Common modern risk areas include:
- “Off-the-clock” work (pre-shift, post-shift, meal breaks, after-hours emails)
- Incorrectly calculating the regular rate when bonuses, commissions, or shift differentials are involved
- Treating a worker as “salaried” and assuming that means “no overtime” (it doesn’t)
Action step: Audit three items quarterly:
- exemption classifications,
- timekeeping practices (especially remote/hybrid teams),
- regular-rate calculations when variable pay exists.
Exempt vs. non-exempt: salary alone is not enough
FLSA exemptions (e.g., executive, administrative, professional) depend on:
- salary basis and salary level requirements, and
- a duties test
Misclassification is a leading trigger for back wages, liquidated damages, and civil penalties.
Action step: Keep a written exemption rationale for each exempt role (job description + duties analysis), and revisit when job duties change.
Posting requirements: the FLSA notice is still required
One of the simplest—but easiest to miss—requirements is posting the FLSA notice in a conspicuous place where employees can see it.
SwiftSDS recommends using the official WHD poster:
- Employee Rights Under the Fair Labor Standards Act (general employers)
- If applicable, use industry/government variants:
- For Spanish-language access where appropriate:
Action step: If you have remote employees, consider how you provide required notices electronically (where permitted) and maintain proof of delivery/availability.
Recordkeeping rules you should operationalize
The FLSA includes recordkeeping requirements (29 C.F.R. Part 516). Employers generally must maintain accurate records of, among other things:
- employee identifying information,
- hours worked each day and each workweek (for non-exempt),
- regular hourly rate,
- total daily/weekly straight-time earnings,
- total overtime earnings,
- additions/deductions from wages,
- total wages paid and pay period details.
Action step: Ensure your time system captures all “hours worked,” including training time, travel time (where compensable), and required meetings.
Child labor rules: still enforced, with real penalties
The FLSA’s child labor provisions remain active and are frequently enforced—especially in retail, hospitality, and food service. The rules restrict:
- the types of work minors may perform (hazardous occupations),
- the hours and times of day minors can work (age-dependent).
Action step: Implement age verification during onboarding and schedule guardrails in workforce management tools to prevent prohibited hours.
How the FLSA interacts with other federal workplace obligations
The fair labor standards act impact is biggest in wage/hour, but employers should coordinate compliance across related federal frameworks—especially as policies overlap in onboarding, documentation, and employee communications.
For example:
- General worker protections and how employees assert rights: 5 rights of workers
- EEO goals and equal employment compliance messaging: as it pertains to employment opportunity the eeo strives to
- ADA documentation and HR process alignment: ada hr and ada forms for employers
- Leave-law classification questions that often overlap with wage/hour status: are contractors eligible for fmla
Action step: Don’t silo compliance. Misclassification issues (employee vs. contractor, exempt vs. non-exempt) can create cascading exposure across overtime, leave administration, and anti-discrimination accommodation processes.
Location-specific compliance: why “federal baseline” isn’t enough
While the FLSA is nationwide, states often add stricter wage/hour requirements and additional posting obligations. If you employ workers in Massachusetts, for example, state wage/hour postings and anti-discrimination notices may apply in addition to the federal FLSA poster, such as:
Action step: Maintain a jurisdiction checklist for each worksite (and remote employee location) so you can satisfy both federal and state/local requirements without gaps.
Practical compliance checklist (SwiftSDS-ready)
- Confirm coverage (enterprise/individual) and document your determination.
- Classify roles (exempt/non-exempt) using duties + salary tests; recheck annually.
- Lock down timekeeping: no off-the-clock work; written policy + manager training.
- Validate regular rate calculations for bonuses/commissions/shift pay.
- Post the correct FLSA notice and keep it updated: use the WHD poster links above.
- Retain records consistent with 29 C.F.R. Part 516 and your state retention rules.
- Monitor state/local changes via employment law updates.
FAQ
Is the Fair Labor Standards Act still around today if my employees are salaried?
Yes. Salary status does not remove FLSA obligations. You must still determine whether each salaried worker is properly exempt under the applicable duties and salary tests. If not exempt, overtime may be due.
What is the biggest fair labor standards act impact for small businesses?
Overtime and misclassification risk. Small employers often face exposure from off-the-clock work, incorrectly treating “salary” as exempt, or not maintaining compliant time and payroll records.
Do I have to post an FLSA notice if I only have remote employees?
You still must provide the required notice to covered employees. Many employers use electronic distribution and a readily accessible intranet posting where allowed, along with documentation showing employees can access the notice.
SwiftSDS helps employers operationalize these requirements with the right labor law notices and a structured compliance approach across federal and state rules.