Fair Labour Standards Act (FLSA): What HR and Employers Must Do to Stay Compliant
If you’re searching for the fair labour standards act (commonly called the FLSA), you likely need a clear answer to: what are fair labor standards, who is covered, what pay practices are required, and what documentation you must keep to avoid wage-and-hour violations. This SwiftSDS guide explains the Fair Labor and Standards Act of 1938, core compliance steps, and where key exemptions and penalties appear in the U.S. Code.
For broader context on federal requirements that often overlap with wage-and-hour compliance, review SwiftSDS’s hub on Employment law topics.
What are fair labor standards under the FLSA?
Fair labor standards are the minimum nationwide rules—enforced by the U.S. Department of Labor (DOL), Wage and Hour Division—governing:
- Minimum wage
- Overtime pay
- Recordkeeping
- Child labor restrictions
- Certain rules for tip credit, youth employment, and special industries
The FLSA sets a federal floor. Many states and cities go further (higher minimum wages, stricter overtime rules, additional pay requirements). When federal and state/local rules differ, employers generally must follow the standard most protective of the employee.
To understand how these federal rules fit into a wider compliance program, see Employment basics and SwiftSDS’s employment legislation list.
Why was the Fair Labor Standards Act created?
If you’re asking why was the fair labor standards act created (or why was FLSA created), the purpose was to establish a baseline of wage and hour protections nationwide and reduce harmful labor conditions. The Fair Labor and Standards Act of 1938 was designed to curb exploitative pay practices, limit excessive working hours (via overtime requirements), and restrict oppressive child labor—creating more consistent standards across industries and states.
In practice, the “fair act law” concept is about building predictable, enforceable rules so employers compete on efficiency and quality—not by underpaying workers or extending hours without additional compensation.
Core federal wage laws employers must follow (actionable checklist)
1) Pay at least federal minimum wage (and applicable state/local minimums)
Federal minimum wage is set under the FLSA; however, many jurisdictions require more. Your compliance workflow should include:
- Confirming the work location(s) where employees perform work
- Comparing federal vs. state/local minimum wage requirements
- Ensuring pay rates meet the highest applicable minimum
Because working time definitions and daily/weekly hour rules can vary by state, it’s also smart to cross-check SwiftSDS’s Employment working hours law resource when you operate in multiple states.
2) Pay overtime correctly for non-exempt employees
Under the FLSA, most non-exempt employees must receive overtime pay for hours worked over 40 in a workweek at not less than 1.5× the regular rate of pay.
Action items for HR and payroll:
- Define the employer’s workweek (fixed and recurring period of 168 hours)
- Confirm timekeeping captures all hours worked (including certain required training or pre/post-shift time when compensable)
- Ensure the “regular rate” includes required remuneration (some bonuses and differentials may need to be included)
3) Classify employees correctly (exempt vs. non-exempt)
Misclassification is a common wage-and-hour risk. While the details depend on job duties and salary basis/threshold rules, the key compliance step is to:
- Document the exemption rationale (duties test + salary basis where applicable)
- Re-audit when roles change or pay structures change
When misclassification intersects with broader employee rights expectations, it can be helpful to align wage-and-hour compliance with worker communications and postings; see 5 rights of workers.
4) Maintain required records
The FLSA includes recordkeeping requirements (such as hours worked and wages paid). Operationally, employers should ensure:
- Time records are accurate and retained per policy and applicable law
- Pay statements and payroll registers support how the regular rate and overtime were calculated
- Policies for rounding, meal periods, and edits are controlled and auditable
5) Post the required FLSA notice
Most covered employers must display the DOL’s FLSA poster in a conspicuous place. SwiftSDS helps teams centralize poster compliance; the relevant notice is:
- Employee Rights Under the Fair Labor Standards Act (DOL Wage and Hour Division)
If you have Spanish-speaking employees or want to provide bilingual access, you can also provide:
And for public sector workplaces:
For agricultural employers:
Key enforcement and penalties: 29 U.S.C. § 216 (29 USC 216)
A frequent compliance search is 29 USC 216, which is the FLSA section addressing penalties and enforcement. In practical terms, FLSA violations may lead to:
- Liability for unpaid minimum wages or overtime
- Potential liquidated damages (often equal to unpaid wages)
- Civil money penalties in certain circumstances (including child labor violations)
- Attorney’s fees and costs in employee-initiated litigation (where applicable)
Compliance takeaway: treat timekeeping accuracy, exemption analysis, and overtime calculations as high-priority internal controls—especially during growth, acquisitions, or shifts to remote/hybrid work.
For a deeper look at how enforcement agencies and standards are structured, see Division of labor standards.
Common exemptions and special rules: 29 U.S.C. § 213 (29 USC 213)
Another high-intent query is 29 USC 213, which contains exemptions and special provisions under the FLSA. While exemption analysis is fact-specific, employers should know that:
- Not all employees are entitled to FLSA overtime (for example, certain “white-collar” exemptions may apply when duties and pay requirements are met).
- Some industries and roles have specialized rules (including certain transportation-related roles and other enumerated categories).
Actionable best practice:
- Don’t rely on job titles alone (“manager,” “admin,” “supervisor”).
- Perform a duties-and-pay review and keep documentation in the employee’s classification file.
Multi-jurisdiction compliance: federal baseline + state requirements
Because the FLSA is a federal baseline, you should also map wage-and-hour compliance to where employees actually work. If you operate in Massachusetts, for example, you may also need state-specific postings and wage/hour rules. SwiftSDS provides Massachusetts notices such as:
Even when your core question is “fair labor standards act,” compliance success usually depends on pairing federal wage laws with the correct state notices and standards.
Practical compliance steps for HR teams (SwiftSDS-ready)
H3) Build a wage-and-hour compliance routine
- Run quarterly audits of exempt/non-exempt classifications
- Reconcile timecards to payroll (spot-check overtime calculations)
- Review bonus/differential structures for “regular rate” impacts
- Train managers to avoid off-the-clock work (pre-shift tasks, late-night emails, travel time issues)
H3) Standardize policies and documentation
- Written workweek definition
- Rounding and meal/rest rules (where permitted and applicable)
- Clear process for employees to report time corrections without retaliation
H3) Keep posters current and accessible
- Confirm you have the correct FLSA poster version displayed
- Provide language access where appropriate (e.g., Spanish)
- For public sector/agriculture, ensure you’re using the correct variation
FAQ: Fair Labour Standards Act (FLSA)
What are fair labor standards in simple terms?
They are the minimum U.S. rules for pay and hours—primarily minimum wage, overtime, recordkeeping, and child labor protections—set by the Fair Labor and Standards Act of 1938 and enforced by the DOL.
What is 29 USC 216 and why does it matter?
29 U.S.C. § 216 is a key enforcement section of the FLSA. It’s where you’ll find remedies and potential penalties tied to unpaid wages and other violations—one reason wage-and-hour audits and documentation matter.
What is 29 USC 213?
29 U.S.C. § 213 covers FLSA exemptions and special rules. Employers often reference it when analyzing whether a job may be exempt from overtime or other requirements—but the analysis must match the employee’s real duties and pay practices.
If you’re building a broader federal compliance program beyond wage-and-hour rules, SwiftSDS’s Employment law topics hub connects related requirements (posters, employee rights, and enforcement considerations) that commonly intersect with FLSA obligations.