FLSA meaning: FLSA stands for the Fair Labor Standards Act, a 1938 US federal law that sets the national minimum wage, requires overtime pay for many workers, sets recordkeeping rules for employers and limits child labor. It is enforced by the Wage and Hour Division of the U.S. Department of Labor.
What does FLSA mean at work?
When HR or payroll mentions the FLSA, they are usually talking about two things: whether you are paid at least minimum wage, and whether you are owed overtime.
The FLSA covers most private employers and government agencies. It sets the federal minimum wage, which has been $7.25 an hour since 2009. Many states and cities set higher minimums, and employers must pay whichever rate is highest.
Under the FLSA, “non-exempt” employees must get overtime pay of at least one and a half times their regular rate for hours worked over 40 in a workweek. “Exempt” employees do not get overtime. To be exempt, a job usually has to meet both a salary test and a duties test, such as executive, administrative or professional work.
You will see FLSA status on offer letters, job postings and HR systems as “FLSA: Exempt” or “FLSA: Non-exempt.”
What the FLSA covers (and what it doesn’t)
| The FLSA requires | The FLSA does not require |
|---|---|
| Federal minimum wage for covered workers | Paid vacation or holidays |
| Overtime at 1.5× the regular rate after 40 hours a week (non-exempt workers) | Paid sick leave (some states and cities do) |
| Accurate records of hours and pay | Severance pay |
| Limits on hours and jobs for workers under 18 | Meal or rest breaks for adults (some states do) |
| Equal pay for equal work regardless of sex (Equal Pay Act, part of the FLSA) | Overtime for working weekends or holidays as such |
State laws can add protections on top of the FLSA. When state and federal rules differ, workers generally get the more protective standard.
Examples of FLSA in emails and messages
Job posting: “Customer Support Specialist – $22/hour – FLSA status: Non-exempt.”
HR email: “Because this role is FLSA non-exempt, please record all hours worked, including time spent answering email after hours.”
Manager Slack: “Before we reclassify the coordinator role as exempt, let’s check the FLSA duties test with HR.”
Payroll note: “Overtime calculated per FLSA: 4 hours at 1.5× regular rate.”
Exempt vs non-exempt under the FLSA
| Non-exempt | Exempt | |
|---|---|---|
| Overtime pay | Yes, after 40 hours in a workweek | No |
| How paid | Often hourly, sometimes salaried | A salary of at least $684 a week ($35,568 a year) under current federal rules, plus a duties test |
| Typical roles | Retail, support, admin, many trades | Managers, many professionals, some administrative roles |
| Time tracking | Hours must be recorded | Often not tracked hour by hour |
A 2024 rule that would have raised the salary threshold was struck down by a federal court, and the Department of Labor has since put the $684-a-week level back in its regulations. Some states, such as California and New York, set higher salary thresholds for exempt workers, so check your state’s rules too.
Job titles alone don’t decide exemption. A “manager” title with mostly non-managerial duties may still be non-exempt. See what overtime exempt means for more detail.
How to use the FLSA correctly at work
- Check your FLSA status. It should be in your offer letter or HR portal. If it isn’t, ask HR.
- Track all hours if you are non-exempt. Work done before or after your shift, such as answering emails, usually counts.
- Know your workweek. Overtime is based on a fixed, recurring 168-hour week set by your employer, not on daily hours under federal law.
- Look up your state rules. Some states have higher minimum wages or daily overtime rules.
- Raise concerns early. Ask HR about pay questions, or contact the DOL Wage and Hour Division if needed.
Related terms
See more in our HR, Hiring and Leave hub.
FAQ
What does FLSA stand for?
FLSA stands for the Fair Labor Standards Act, a federal law passed in 1938 that sets minimum wage, overtime, recordkeeping and child labor standards.
What is the federal minimum wage under the FLSA?
The federal minimum wage is $7.25 per hour and has been since July 2009. Many states and cities require a higher minimum, and the higher rate applies.
Does the FLSA require paid time off?
No. The FLSA does not require paid vacation, holidays or sick leave. Those benefits come from employer policy or state and local laws.
What does FLSA non-exempt mean?
A non-exempt employee is covered by the FLSA overtime rules and must be paid at least one and a half times their regular rate for hours over 40 in a workweek.
Who enforces the FLSA?
The Wage and Hour Division of the U.S. Department of Labor enforces the FLSA. Workers can also bring private lawsuits for unpaid wages.
Sources
- U.S. Department of Labor: Fair Labor Standards Act
- U.S. Department of Labor: Overtime Pay
- U.S. Department of Labor: Minimum Wage
This article is general information, not legal or tax advice. Check with a qualified professional for your situation.
