Fair Labor Standards Act of 1938
The Fair Labor Standards Act ("FLSA")(29 U.S.C. §201), is a comprehensive law that mandates payment of the national minimum wage, and the requirement for payment of overtime. Most states have a state law that parallels this law. In PA, that law is the Wage Payment and Collection Law.
The FLSA requires employees to pay the minimum wage then in effect; and prohibits employment of any covered employee in excess of 40 hours per week unless the employee is paid at least 1 1/2 times his/her regular hourly wage. Covered employees are not required to accept "comp time" in lieu of payment of overtime.
Whether or not a person is protected by the overtime and minimum wage provisions of the FLSA is determined largely by the nature of their work, by the act providing categories of employment positions that are "exempt" from, or not protected by the Act. Generally, the Act excludes, or "exempts" administrative, executive, professional and other employees from its coverage. A very general rule of thumb is to determine whether the employee is a "blue collar" or "white collar" employee, with many white collar employees being exempt; and most blue collar workers being protected.
The courts determine whether or not an employee is exempt by determining what the employee does, rather than merely accept a label placed on a particular position by an employer. For example, many employers mistakenly believe that all "salaried" employees are exempt from coverage under the FLSA. However, if the employee is found not to fall within an exempted definition in fact, based on what he/she does, the position title is irrelevant, and the employer who fails to pay the employee minimum wage or overtime could be found to be in violation of the Act.