What act establishes minimum wage, overtime pay, and recordkeeping standards for workers?

Study for the SHRM US Employment Laws and Regulations Test. Use flashcards and multiple choice questions with hints and explanations. Get exam ready!

The Fair Labor Standards Act (FLSA) is the fundamental piece of legislation that sets forth minimum wage and overtime pay requirements for workers in the United States. Enacted in 1938, the FLSA mandates that employees must be paid at least the federal minimum wage for their work, and it outlines conditions under which workers must receive overtime pay—specifically, time-and-a-half for hours worked over 40 in a workweek.

In addition to wage and overtime provisions, the FLSA also establishes important recordkeeping standards for employers, requiring them to maintain accurate records of employees' wages, hours worked, and other essential data. This act is critical for protecting the rights of workers and ensuring fair compensation for labor rendered.

Other options, while related to employment practices, address different issues, such as discrimination (Equal Employment Opportunity Act), family leave (Family and Medical Leave Act), and pay equity (Equal Pay Act), and do not focus primarily on wage and hour regulations as the FLSA does.

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