The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping and youth employment standards affecting employees in the private sector and in federal, state and local governments. Covered non-exempt workers are entitled to a minimum wage of not less than $7.25 per hour effective July 24, 2009. Overtime pay at a rate not less than one and one-half times the regular rate of pay is required after 40 hours of work in a work week.
FLSA determines whether employees are subject to or exempt from overtime provisions. If employees are determined to be serving in a non-exempt position, overtime pay or compensatory time must be provided for working more than 40 hours in a defined work week. When non-exempt employees work over 40 hours during their scheduled work week, they are entitled to time and a half pay or compensatory time calculated at time and a half for all hours actually worked in excess of 40 hours.
For additional information, please refer to SAM 02.B.07, Fair Labor Standards Act.