Wages

The Department of Labor imposes the Fair Labor Standards Act (FLSA), which sets basic minimum wage and overtime pay standards. These standards are imposed by the Department’s Wage and Hour division, a program of the Employment Standards Administration.

Those workers, covered by the FLSA, are entitled to a minimum wages of not less than $5.85 per hour effective July 24, 2007. Overtime pay at a rate of not less than one and one-half times their regular rate of pay is required after 40 hours of work in a work week. Certain exemptions apply to specific types of businesses or specific types of work.

The FLSA does not, however, requires severance pay, sick leave, vacations, or holidays.

In addition to the FLSA, the Wage and the Hour Division enforces other labor laws related to wage payment. Among these are:

The Davis-Bacon and Related Acts, which require payment of prevailing wages rates and fringe benefits on federally-financed or assisted construction.
The Service Contract Act, which requires payment of prevailing wage rate and fringe benefits on contract to provide services to the federal government.
The Walsh-Healey Public Contracts Act, which requires payment of minimum wage rates and overtime pay on federal contracts to manufacture or provide goods to the federal government.
The Contract Work Hours and Safety Standards Act,, which set overtime standards for most federal service contracts, federally funded construction contracts and federal supply contracts over $100,000.

The Family and Medical Leave Act (FMLA) provides for up to 12 weeks of unpaid leave for certain medical and family situations (e.g. adoption) for either the employee or a member of the covered and eligible employee’s immediate family, however in many cases paid leave may be substituted for unpaid FMLA leave. The Immigration and Nationality Act of 1990 applies to employers seeking to hire nonimmigrant aliens as workers in specialty occupations under H-1B visas.

Choose from the Wages subtopics list to narrow your browsing. Also, see the Office of Compliance Assistance Policy’s Web pages on wages and hours worked.

Basic Wage Standards

Nonexempt workers are entitled to a minimum wage of not less than $5.85 per hour effectively July 24, 2007; $6.55 per hour effective July 24, 2008 and $7.25 per hour effective July 24, 2009. Special provisions apply to workers in American Samoa and the Commonwealth of the Northern Mariana Islands. Nonexempt workers must be paid overtime pay at a rate of not less than one and one-half times their regular rates of pay after 40 hours of work in a workweek.

Wages required by FLSA are due on the regular payday for the pay period covered. Deductions made from wages for such items as cash or merchandise shortages, employer required uniforms and tools of the trade are not legal to the extent that they reduce the wages of employees below the minimum rate required by FLSA or reduce the amount of overtime pay due under FLSA.

The FLSA contains some exemptions from these basic standards. Some apply to specific types of businesses; others apply to specific kinds of work.

While FLSA does set basic minimum wage and overtime pay standards and regulates the employment of minors, there are a number of employment practices which FLSA does not regulate.

For example, FLSA does not require:

Vacation, Holiday, Severance or Sick Pay
Meal or rest periods, Holidays off or Vacations
Pay raises or fringe benefits
A discharge notice, reason for discharge or immediate payment of final wages to terminated employees

The FLSA does not provide wage payment or collection procedures for an employee’s usual or promised wages or commissions in excess of those required by the FLSA. However, some States do have laws under which such claims may be filed. Also FLSA does not limit the number of hours in a day or days in a week an employee may be required or scheduled to work, including overtime hours, if the employee is at least 16 years old.

The above matters are for agreement between the employer and the employees or their authorized representatives.