Wage and Hour Fair Labor Standards Act (FLSA)

The Fair Labor Standards Act (FLSA) is a federal law that establishes minimum-wage, overtime-pay, recordkeeping, and child-labor protections for covered workers. State and local wage laws may provide additional or stronger protections.

Common Wage and Hour Issues

• Failure to pay at least the applicable minimum wage
• Unpaid overtime for hours worked beyond 40 in a workweek
• Work performed before clocking in or after clocking out
• Unpaid training, meetings, travel, or required preparatory tasks
• Improper deductions from wages
• Automatic meal-break deductions when an employee continues working
• Misclassification of employees as exempt workers or independent contractors
• Failure to include certain compensation when calculating overtime
• Retaliation after a worker raises a wage concern or participates in an investigation

Overtime and Exemptions

Covered, nonexempt employees generally must receive overtime compensation when they work more than 40 hours in a workweek. Paying an employee a salary or giving the employee a managerial title does not automatically eliminate overtime rights.

An exemption typically depends on specific legal requirements involving compensation and the employee’s actual job duties. Because exemptions are fact-specific, an employee’s day-to-day responsibilities are usually more important than the position’s title or written description.

Compensable Working Time

Employers generally must compensate covered employees for work they permit or require, even when that work occurs outside a scheduled shift. Examples may include opening or closing duties, responding to work communications, putting on required equipment, completing paperwork, or working through an unpaid meal period.

Short rest breaks offered by an employer are generally treated differently from bona fide meal periods. A meal period may be unpaid only when the employee is relieved of work duties for the required period.

Employee or Independent Contractor

Calling a worker an independent contractor does not determine the worker’s legal status. Classification generally depends on the realities of the working relationship, including the degree of control, the worker’s opportunity for profit or loss, the permanence of the relationship, and whether the work is integral to the business.

A misclassified worker may have claims for unpaid minimum wages or overtime and may also have rights under other employment laws.

Records That May Help Evaluate a Claim

Workers concerned about unpaid wages should preserve available records, including:

• Pay stubs and wage statements
• Timecards, schedules, calendars, and personal notes of hours worked
• Employment agreements, handbooks, and compensation plans
• Emails, text messages, or application records showing work outside scheduled hours
• Job descriptions and documents reflecting actual duties
• Policies concerning overtime, meal periods, travel, or timekeeping
• Names of coworkers who observed similar practices

An employer’s failure to maintain accurate records does not necessarily prevent an employee from pursuing a claim. Other credible evidence may be used to establish the amount of work performed.

Retaliation Is Prohibited

The FLSA prohibits retaliation against workers who assert protected wage rights, file or participate in a complaint, or cooperate with an investigation or proceeding. Retaliation may include termination, demotion, reduced hours, threats, discipline, or other materially adverse treatment.

Potential Remedies

Depending on the circumstances, a successful wage claim may permit recovery of unpaid wages or overtime, an additional amount as liquidated damages, and attorney fees and costs. Retaliation claims may support additional relief. Filing deadlines apply and can vary according to the claim and governing law.

Reviewing a Possible Wage Claim

A wage-and-hour analysis should consider the worker’s actual duties, compensation method, hours worked, employer policies, and any applicable federal, state, or local protections. Because classification rules, exemptions, and filing deadlines can be complex, workers should seek timely advice based on their individual circumstances.