What is the Fair Labor Standards (“FLSA”) Act?
The Department of Labor, in the background section of 29 CFR Part 541, states that, “the FLSA generally requires covered employers to pay their employees at least the federal minimum wage and overtime premium pay for all hours worked over 40 in a work week”. However, the FLSA includes a number of exemptions from the minimum wage and overtime requirements. Section 13(a)(1) of the FLSA, codified at 29 U.S.C. 213(a)(1), exempts from both minimum wage and overtime pay for executive, administrative, professional, outside sales and computer employees. These exemptions are often referred to as the “white collar” exemptions. To be considered exempt, employees must meet certain minimum tests related to their primary job duties and, in most cases, must be paid on a salary basis at not less than minimum amounts as specified in pertinent sections of these regulations ($455 per week at the time of this writing, effective as of 8/23/04). (http://www.dol.
