How does the Fair Labor Standard Act affect the wages paid by many firms?

1 Answer
Feb 22, 2017

The Fair Labor Standards Act established the 40 hour base work week and set minimum wage, Age and other standards for most Public and Private Employees in the USA. It was first passed in 1938.

Explanation:

The Act is a US government (Federal) Legislation. There are exemptions particularly for "White Collar" Employees but the Act has a broad coverage for Employers exceeding $500,000 in business or Gross Sales. There are variations where tipping and other circumstances are involved. In most cases Minors (children) are not allowed to work. The sets rules for the payment of overtime and for record keeping.

The Act does not limit hours of work it just sets rules on how much must be paid.

The rules are fairly complex and vary slightly from case to case. It is important legislation in that it sets out a backbone of administration necessary to hire and pay Employees in the United States and its Territories.

The Act has been amended many times.