The Fair Labor Standards Act & Employees' Legal Rights under Employment Law
The Fair Labor Standards Act (FLSA) & Employees’ Legal Rights
1. Introduction
The Fair Labor Standards Act, 1938 (FLSA) is a U.S. federal law that establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting employees in the private sector and in federal, state, and local governments.
It was enacted to protect workers from exploitation and to ensure fair working conditions.
2. Major Provisions of FLSA
(a) Minimum Wage
FLSA sets a federal minimum wage (currently $7.25 per hour in the U.S.).
States may have higher minimum wages, but not lower.
Employers must pay whichever is higher (federal or state).
(b) Overtime Pay
Employees covered by FLSA must receive 1.5 times their regular pay rate for all hours worked over 40 hours in a workweek.
Certain employees (executives, professionals, administrators) are exempt.
(c) Child Labor Restrictions
Protects minors from excessive working hours and hazardous jobs.
Minimum age for non-agricultural work: 14 years (with restrictions).
Hazardous work is prohibited for those under 18.
(d) Recordkeeping Requirements
Employers must maintain accurate records of wages, hours, and employment conditions.
Ensures transparency and compliance.
(e) Equal Pay
FLSA incorporates principles from the Equal Pay Act (1963), requiring equal pay for equal work regardless of gender.
3. Employees’ Legal Rights under FLSA
Right to Minimum Wage – No employee can be paid below the statutory minimum.
Right to Overtime Compensation – Workers must be fairly compensated for long hours.
Right to Protection against Exploitative Child Labor – Safeguards for minors.
Right to Accurate Wage Records – Employees can inspect and verify records.
Right to Sue Employers – Employees can file claims for unpaid wages, overtime, or retaliation.
Right to be Free from Retaliation – Employers cannot fire or discriminate against employees for asserting their FLSA rights.
4. Case Laws under FLSA
1. Brooklyn Savings Bank v. O’Neil (1945)
Facts: Employer tried to settle an employee’s claim for unpaid wages without paying the full amount.
Held: The Supreme Court held that employees cannot waive their rights to liquidated damages under FLSA.
Principle: FLSA rights are mandatory and cannot be privately waived.
2. Tennessee Coal, Iron & R. Co. v. Muscoda Local No. 123 (1944)
Facts: Miners claimed travel time from mine entrance to working face should be counted as work hours.
Held: The Court agreed that such time was part of the workday.
Principle: “Work” includes physical or mental exertion controlled or required by the employer.
3. Anderson v. Mt. Clemens Pottery Co. (1946)
Facts: Employees sought compensation for time spent walking from the factory gate to workstations.
Held: Time spent on employer’s premises necessary for job duties counted as “working hours.”
Principle: Broad interpretation of compensable working time.
4. Barrentine v. Arkansas-Best Freight System, Inc. (1981)
Facts: Truck drivers claimed unpaid wages under FLSA but were told arbitration under a union contract was the remedy.
Held: Employees can pursue FLSA claims in court regardless of union arbitration.
Principle: Statutory rights under FLSA cannot be waived through collective bargaining.
5. Jewell Ridge Coal Corp. v. Local No. 6167 (1945)
Facts: Miners sought pay for underground travel time.
Held: Supreme Court ruled in favor of miners.
Principle: Time spent traveling underground is part of “work.”
6. Encino Motorcars, LLC v. Navarro (2018)
Facts: Service advisors at car dealerships claimed overtime pay under FLSA.
Held: Supreme Court ruled they are exempt from overtime.
Principle: Interpreted the scope of exemptions under FLSA.
5. Remedies under FLSA
Employees can recover:
Unpaid wages
Overtime compensation
Liquidated damages (double damages for willful violations)
Attorney’s fees and costs
Injunctions against employers
6. Conclusion
The FLSA ensures fair pay, regulated hours, and workplace protection, forming the backbone of U.S. employment law.
Courts have consistently interpreted FLSA broadly in favor of workers, ensuring their fundamental rights are not compromised.
Employers must strictly comply, as violations can result in financial penalties, back pay, and reputational damage.
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