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What Workers Should Know About the Fair Labor Standards Act

July 1, 2025
What Workers Should Know About the Fair Labor Standards Act

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You may not know its name, but the Fair Labor Standards Act (FLSA) has been fighting for your work rights since 1938. The FLSA is the rulebook for fair pay, overtime, recordkeeping, and youth work restrictions. The FLSA covers most employers with $500K+ in sales or those doing business across state lines, this has been interpreted very broadly so whether you’re a hospital worker, warehouse packer, cashier, or call center rep, your employment is probably influenced, at least in part, by the provisions of the FLSA.

What is the FLSA?

Most jobs fall under the FLSA, which sets standards for pay, overtime, and working conditions, so there’s a good chance it applies to you.

Minimum Wage

The FLSA sets the federal minimum wage, currently $7.25 per hour (it’s been the same since 2009). Some states and cities set higher minimums, and when that happens the employer must pay the higher rate. So if you’re in New Jersey where the minimum wage is $15.49 in 2025, you should be earning at least New Jersey minimum wage at $15.49, not  federal minimum wage at $7.25.

Pro tip: Check your state and local wage laws, they might just be more generous than Uncle Sam’s. And if anything’s unclear, an FLSA lawyer can give you straight answers.

Overtime Pay

The FLSA also says hourly (“non-exempt”) workers should receive time-and-a-half overtime pay for hours worked over 40 in a week. So, if your regular pay is $20/hr. and you work 45 hours in a workweek, you should receive at least $30/hr. for those five extra hours.

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Spoiler Alert: Not everyone qualifies for overtime pay. There are “exempt” workers who don’t receive it, like certain salaried employees, managers, professional staff, outside salespeople, and some computer employees. But just because your boss calls you “salaried” doesn’t mean you’re exempt from overtime, it depends on your actual job duties and salary level. An employment lawyer for FLSA claims can help you figure out where you really stand.

All the Time You Spend Working Counts

The FLSA requires that you are paid for all the time you work, even those few minutes before your shift when you’re booting up a computer or after you clock out and your manager says, “Hey, can you just wipe down those tables?”

Also covered:

  • Time spent waiting at your workstation
  • Mandatory trainings
  • Time spent putting on and taking off safety gear

And if you’re working from home, remember: work-from-home doesn’t mean “free labor from home.” Whether you’re typing from your kitchen counter or editing spreadsheets on your phone while in line at the grocery store, those hours count as compensable time, especially if your employer knows or should know you are performing work. Employers are supposed to track hours worked, even remotely. That might mean using time-tracking software like Toggl, Clockify, or even a shared spreadsheet to log your start and stop times. If they don’t pay you for those hours and you’re working off the clock you may be entitled to back pay, along with double damages and attorneys’ fees and costs. Consider speaking with an FLSA attorney who can help you figure out if you have a claim.

But… lunch breaks of 30 minutes or more don’t have to be paid—as long as you’re relieved of duty. If you’re munching a sandwich while answering emails? That’s work, and you should be paid.

The FLSA and Tips

If you work in a restaurant, bar, or anywhere else you earn tips, it’s a little more complicated. Employers can pay as little as $2.13/hour in direct wages, if your tips bring you up to the minimum wage. But if your tips don’t add up your employer has to make up the difference.

Important twist: Not every tip pool is legal. If your tips are shared with managers or back-of-house staff (such as dishwashers or cooks), that may violate the FLSA. If in doubt, contact a Fair Labor Standards Act attorney.

Why is the FLSA important?

The FLSA is important because it sets basic protections like minimum wage, overtime pay, and rules around child labor to help make sure workers are treated fairly.

Who is Covered?

If you work for a business or a government agency, there’s a good chance the FLSA applies to you, particularly if the job involves interstate work or your employer makes enough revenue to meet federal thresholds.

The FLSA covers a lot, but not everything. It doesn’t guarantee:

These benefits are often set by state law or company policy, not the FLSA. So, check your employee handbook or state labor website for details or contact a Fair Labor Standards Act attorney.

FLSA Exemptions

Common FLSA exemptions include executive, administrative, professional, outside sales, and certain computer employees who meet specific salary and duties tests. However, many employees give grand sounding titles that don’t qualify for the exemption from overtime. For example, if you’re called the “toilet manager” because you manage the bathroom, you’re not an actual manager under the law and your entitled to receive time and half for overtime for all the crappy tasks your employer has been giving you.

Common Wage-and-Hour Violations by Industry

From call centers to warehouses, these are some examples of wage and hour violations.

Call Centers:

Call center employees are often required to boot up systems and log in before their shifts, but some employers fail to pay for the boot time instead only paying when the person is call ready.

Warehouses:

If you’re required to work off the clock, like loading, unloading, cleaning up, or prepping inventory before your shift starts or after you’ve clocked out, that’s likely a wage violation.

Healthcare (Hospitals & Nursing Homes):

Nurses and aides often work through unpaid meal breaks or stay late to finish charting. That extra time is often compensable.

Retail:

Retail workers may be asked to open or close the store off the clock or stay late for inventory without overtime. Those extra minutes add up, and unpaid time like this could be a wage violation.

Bank Workers:

If you’re required to arrive early or stay late for tasks like unlocking the branch, disarming alarms, or performing security sweeps and you’re not paid for that time your employer may be violating wage laws. Opening and closing duties are often considered compensable work under the FLSA.

Construction:

Some contractors misclassify laborers as independent contractors to avoid paying overtime. If you’re doing the work of an employee, you may be owed back wages or if you’re paid straight time for overtime there may be a FLSA lawsuit.

These are just some examples. Contact an employment lawyer for FLSA claims for more details.

When Things Go Wrong: What You Can Do

If you think your employer violated the FLSA, here’s what you can do: Document your hours, pay, and anything fishy but talk to an FLSA lawyer right away, especially if there are a lot  of employees involved or a significant amount of money at stake. And remember, it’s possible for all employees to sue together in one lawsuit—so don’t be too discouraged if the individual amounts seem too small, a law firm might take the matter on contingency meaning they’re only paid if they win your case.

Final Thoughts: Know Your Worth, Know Your Rights

The Fair Labor Standards Act does the heavy lifting when it comes to workplace protection. A quick check can mean a bigger paycheck. An Employment lawyer for FLSA claims is your trusted guide through pay and overtime rules and they can fight for your rights, potentially having you receive double or triple your damages plus attorneys’ fees and costs. Wage and hour law firms like Brown, LLC also offer free and confidential consultations, so don’t delay learn your rights right away.

Reviewed by

Legal Assistant. Adrian holds a B.A. in Philosophy, Political Science, and History from UCLA, and is dedicated to ensuring justice through a career in law.