Major Provisions of the Minimum Wage Act
- The Fair Labor Standards Act establishes the minimum wage.test preperation image by Bradlee Mauer from Fotolia.com
The minimum wage is established by the Fair Labor Standards Act (FLSA) of 1938. The FLSA was written by the Wage and Hour Division of the Department of Labor. The minimum wage is among FLSA laws established to provide employees with reasonable working conditions. - As of July 2009, the federal minimum wage is $7.25 per hour. People under age 20 and employees who receive tips are exempt. Employers can pay people under 20 a minimum of $4.25 per hour for the first 90 days of their employment. Tips received by employees are considered part of their wages, and employers can pay tipped employees a minimum of $2.13 per hour.
- When employees work more than 40 hours in one pay period, employers are required to pay them at least time and a half for all hours worked over 40 hours. There is no limit to the amount of overtime hours an employee can work.
- Employers must keep records for every employee, including name, Social Security number, address, and birth date. The records must also include the employee's work information, such as pay rate, and details of the employee's earnings. Employers must keep these records for at least three years.
