The Fair Labor Standards Act (FLSA) became law in 1938. It sets the standards for child labor, minimum wage and overtime pay. In 1963 the Equal Pay Act was passed as an amendment to the FLSA. This Act prohibits gender-based wage discrimination. The language and standards in the FLSA often seem antiquated, but they're still the law. It is essential for supervisors to understand their role in complying with wage and hour laws.
The current federal minimum wage is $7.25 per hour. Many state and local governments are starting to set their own minimum wage requirements. The council in Montgomery County Maryland recently voted to increase the minimum wage to $11.50 over the next few years.
FLSA Claims were up 10% form the previous years figures in the March 2012 to April 2013 time frame. Learn more by reading FLSA Suits Hit Record High --
http://www.hreonline.com/HRE/view/story.jhtml?id=534355547In the news now: President Obama signed a memorandum on March 13, 2014, instructing the Labor Department to update regulations about who qualifies for overtime pay. In particular, he wants Labor to raise the threshold level for the salary-basis test from the current $455 per week in order to account for inflation. The threshold has been raised just twice in the past 40 years. The memorandum also suggests that both the primary duties and pay of some exempted employees do not truly fit in the executive, administrative and professional employees exemptions, referred to as the white-collar exemptions. We can expect the executive exemption to be narrowed, but any changes are likely to take many months.
References: Wages and Hours Worked: Minimum Wage and Overtime Pay from the DOL --
http://www.dol.gov/compliance/guide/minwage.htm