The Fair Labor Standards Act of 1938 (FLSA) provides that covered employers must pay a minimum wage and overtime pay to their employees. The FLSA also imposes recordkeeping requirements and provides for standards for the employment of persons under the age of 16. Under the FLSA, nonexempt employees must be paid a minimum wage of at least $7.25 per hour, which was effective as of July 24, 2009. When employees work over 40 hours in a workweek, employers are required to pay overtime pay at a rate not less than one and one-half times the regular rate of pay for all such hours over 40.

Minimum Wage under the FLSA

Effective as of July 24, 2009, the federal minimum wage is $7.25 per hour. Florida’s minimum wage is actually $7.21 per hour and became effective on January 1, 2009. However, where both state and federal minimum wage laws apply, such as in the state of Florida, then the employer must pay the higher of the two minimum wages.

Overtime Hours

The FLSA requires that nonexempt employees must receive overtime pay for all hours worked over 40 hours during a workweek (a “workweek” is defined under the FLSA as any fixed period of 168 that is regularly recurring – seven consecutive 24-hour periods) at a rate of at least one and one-half times the employee’s regular rate of pay. The employee can be required to work any number of hours during the workweek, although there are limits on youth employment (under 16 years of age). Under the FLSA there is no special or holiday pay (such as double or premium pay) for any work performed on the weekends, or for work performed during a holiday, or during a day that is a normal day off unless an employee works overtime on such days.

Tipped Employees

Employers of tipped employees (i.e., those who customarily and regularly receive more than $30 a month in tips) may take into account such tips as part of wages, but must pay a direct wage of at least $4.19 per hour. If an employer elects to use the “tip credit” provision the employer must: (i) inform each tipped employee that it will be taking the tip credit allowance (including the amount to be credited) before the tip credit is applied; (ii) be able to show that each tipped employee receives at least the minimum wage when his/her direct wages and the tip credit allowance added together; and (iii) allow all tipped employees to retain all tips, whether or not the employer elects to take a tip credit for tips received, except to the extent any such employees participate in a valid tip pooling arrangement.

What Constitutes Hours Worked

An employee is considered to have worked during the entire time period during which the employee is on the premises of the employer at the request or knowledge of the employer. This includes times during which the employee is on call, or at a worksite away from the employer’s place of employment, but at the request of the employer.

Recordkeeping Requirements

The FLSA requires that all employers display an official poster in a conspicuous place that outlines the requirements of the FLSA. Employers are also required to maintain employee time and pay records for certain time periods established by the regulations.

Employment of Persons under the Age of 20

The FLSA sets forth special provisions for employees under the age of 16. These provisions are designed to protect minors and encourage their academic education. The provisions also prohibit the employment of minors in jobs where the conditions are detrimental to their health. Under the youth employment provisions, an employer may pay a reduced minimum wage of not less than $4.25 per hour for employees under 20 years of age during their first 90 days of employment. The FLSA, however, prohibits an employer from hiring or taking any action to fire current employees in order to hire employees at the youth minimum wage.

Retaliation under the FLSA

The FLSA protects employees that complain to their employer for not receiving the benefits of the FLSA. It is illegal for an employer to terminate an employee because he or she complained about not being paid the federal minimum wage or not being paid overtime compensation.