Fair Labor Standards Act (FLSA) has several important roles in the American economy. The FLSA establishes standards for the basic minimum wage and for overtime pay in the United States. It was established by the U.S. Congress in 1938, and it also sets the standards for child labor, and for recordkeeping by employers, according to Susan Healthfield, writing in about.com. The FLSA " ... affects most private and public sector employment," which includes federal government employees, state and local employment as well (Healthfield, 2015). This paper delves into how the FLSA applies to compensation in a variety of ways and situations.
The Minimum Wage -- Issues and Differences
While the FLSA sets the national minimum wage at $7.25 per hour -- that rate went into effect on July 24, 2009 -- it does not " ... provide wage payment collection procedures" for the additional wages that an employee may have been promised by his or her employer (dol.gov). However, state laws differ widely on the minimum wages paid, and in some cases an employee that has been promised additional compensation based on holiday work or other special cases may file for collection of a promised additional compensation (dol.gov).
The $7.25 minimum wage set by the FLSA (a division of the U.S. Department of Labor) and is seen to be far too low by many states and cities; hence, states may raise the minimum wage to levels that the political leadership feel is fair. For example, California and Massachusetts have a $10.00 an hour minimum wage, and the District...
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