ABA Family Legal Guide

Law and the Workplace

On the Job

Wages and Hours

What is the major law governing wages and hours?

The Fair Labor Standards Act (FLSA) sets the minimum wage that an employer may pay its workers. It also establishes overtime payment requirements. The act only applies to some employers, as explained in "Federal Laws Regulating the Workplace" (see page 406). However, even if the employer itself is not covered by the act (because, for example, it does not gross $500,000 annually) it will still be required to pay the minimum wage and overtime if its employees are engaged in interstate commerce.

Even if an employer and its employees are not covered by the FLSA, many states also have minimum wage and overtime laws that will apply to all employers doing business within the state.