Are Your Payroll Practices FLSA-Approved? Let’s Find Out!
Understanding FLSA is like knowing the house rules before playing the game.
To stay compliant, you need to get the basics down.
- Employee vs. Independent Contractor: If you control how and when someone works, they’re an employee. If not, they’re a contractor, and that means no FLSA coverage.
- Workweek: A seven-day, 168-hour period used to track wages and overtime. No shortcuts here.
- Hours Worked: Any time an employee is on the clock, whether in the office, working remotely, or handling emails after hours.
- Exemptions: Some employees are exempt from overtime, but if you classify them wrong, be ready for a fight.
Minimum wage: Because no one works for free.
If you employ workers, they must be paid at least the federal minimum wage. Period.
- Tipped Employees: They can be paid a lower hourly wage as long as tips make up the difference. If they don’t, you owe them more.
- Wage Deductions: Room, board, and uniforms can’t cut into minimum wage. Trying to pass those costs onto employees is a great way to get sued.
Overtime: Clock extra hours, get extra pay. Simple, right?
Not paying overtime is wage theft, and the FLSA doesn’t play.
- Overtime pay kicks in after 40 hours in a workweek at 1.5x the regular hourly rate.
- Piecework and salaried employees? Yep, they’re still entitled to overtime unless classified as exempt.
Hiring minors? The FLSA has a few things to say about that.
Child labor laws exist for a reason. Here’s what you need to know.
- Non-Agricultural Jobs:
- Ages 16-17: Can work unlimited hours but only in non-hazardous roles.
- Ages 14-15: Can work limited hours in approved, non-hazardous jobs.
- Agricultural Jobs: Restrictions depend on the type of farm work and whether it’s family-owned.
The poster rule: Because “I didn’t know” won’t hold up in court.
Every employer must display the official FLSA Employee Rights poster where workers can see it. No poster, no excuses.
Recordkeeping: Keep receipts, or pay the price later.
The government doesn’t do trust falls, so document everything.
- Personal details and job titles of employees.
- Hours worked each week, including overtime.
- Wages paid, deductions, and bonuses.
- Pay dates and periods covered.
Retaliation is illegal. If someone reports an FLSA violation, leave them alone.
Messing with employees who file complaints is a fast track to fines, lawsuits, and a terrible company reputation.
Violations of the FLSA could lead to:
- Back wages owed for unpaid work.
- Fines and penalties, especially for repeat offenders.
- Criminal charges for serious noncompliance.
FLSA compliance is more than just avoiding penalties. It’s about running a fair business.
Beyond meeting the legal minimum, businesses should also consider:
- Nursing Mothers: Provide a private, non-bathroom space for breastfeeding employees for at least one year postpartum.
- Youth Wages: Employees under 20 can be paid a reduced wage for their first 90 days, but only if it’s legal in your state.
- State Laws: Some state wage laws are even stricter than the FLSA. Employers must follow the higher standard.
Before You Go, Here’s Another Must-Know.
The FLSA is just one piece of the compliance puzzle. If you’re handling payroll, employee benefits, or labor law, you also need to understand how it connects to other workplace regulations. That’s why you should check out the Wage and Hour Compliance (FLSA) Made Simple Training Course.
Expand Your Knowledge with FLSA Training.
This guide lays out the basics, but there’s way more to know about proper wage classification, exemptions, and compliance strategies. Get the full picture by enrolling in the Fair Labor Standards Act: FLSA Compliance Training Course today.
References
- U.S. Department of Labor (DOL) – Fair Labor Standards Act
- Wage and Hour Division (WHD) – Fact Sheets
- Occupational Safety and Health Administration (OSHA) – Compliance Assistance
