The Fair Labor Standards Act (FLSA): Your Rights, Employer Responsibilities, and What to Do If They're Violated

The Fair Labor Standards Act (FLSA) is a cornerstone of workers’ rights in the United States. Enacted in 1938, the FLSA established essential workplace protections that millions of employees still depend on today. 

From setting minimum wage standards to regulating overtime pay and prohibiting child labor, the FLSA has shaped the landscape of employment law.

But despite being on the books for more than 80 years, the FLSA is still widely misunderstood—and frequently violated. Employers may misclassify workers, deny proper overtime, or simply fail to pay what’s legally owed. When this happens, workers are left underpaid and undervalued.

At Morgan & Morgan, we believe in fighting For the People, and that means making sure workers are paid fairly and treated with dignity. 

If you feel that your rights were violated, you may be entitled to compensation. Contact Morgan & Morgan today for a free case evaluation to see if you have a claim.

What Is the Fair Labor Standards Act (FLSA)? What Every Employee Needs to Know

The Fair Labor Standards Act is a federal law that governs key aspects of wage and hour rules for workers in both the private and public sectors. Its main objectives are:

• Establishing a federal minimum wage
• Requiring overtime pay for certain employees
• Regulating child labor
• Mandating accurate recordkeeping by employers
   

The law is enforced by the U.S. Department of Labor’s Wage and Hour Division (WHD), but individual employees can also bring lawsuits if they believe their employer violated the FLSA.

Who Is Covered Under the FLSA?

The FLSA covers most employees in the United States, but not all. Coverage generally falls into two categories:

1. Enterprise Coverage

This applies to employers who do at least $500,000 in annual business and are involved in interstate commerce — which includes most businesses today (even small ones that order or ship products out of state).

2. Individual Coverage

Even if a business doesn’t meet the enterprise threshold, employees are covered if their day-to-day work involves interstate commerce — for example, making phone calls to other states, processing credit card transactions, or handling mail orders.

Key Provisions of the FLSA

Minimum Wage

As of now, the federal minimum wage is $7.25 per hour — though many states and cities have enacted higher minimum wages. When state and federal minimum wages differ, the higher rate applies.

If you’re being paid less than your state’s minimum wage, you may have a valid FLSA claim, and Morgan & Morgan can help you fight for the difference.

Overtime Pay

Employees covered by the FLSA must receive 1.5 times their regular pay rate for every hour worked over 40 in a workweek.

However, not all workers are entitled to overtime. Whether you're eligible depends on your classification:

Non-Exempt Employees

These workers are entitled to overtime under the FLSA.

Exempt Employees

These workers are not entitled to overtime, usually because they meet specific criteria related to job duties and salary level (executive, administrative, and professional roles earning a set minimum salary).

Misclassifying employees as exempt is a common violation. Employers may wrongly label someone a “manager” or “independent contractor” to avoid paying overtime.

Child Labor Protections

The FLSA sets age restrictions and working condition standards to protect minors:

• 14- and 15-year-olds can work limited hours in non-hazardous jobs.
• 16- and 17-year-olds can work unlimited hours in non-hazardous jobs.
• Under 18 are barred from hazardous occupations like mining or manufacturing.
   

Violations of child labor laws can result in heavy fines and employer sanctions.

Recordkeeping Requirements

Employers must keep accurate records of hours worked, wages paid, and employee classifications. Failure to do so can support a worker’s claim of unpaid wages or overtime.

Common FLSA Violations

Despite clear rules, FLSA violations happen far too often. Here are some of the most frequent offenses:

Unpaid Overtime

Employers may ask employees to clock out and then continue working, or they may claim salaried workers aren’t owed overtime, even when they don’t qualify for an exemption.

Misclassifying Employees

Some businesses mislabel employees as independent contractors or “exempt” staff from FLSA protections and to avoid paying benefits or overtime.

Illegal Tip Practices

In tip-based industries (like restaurants), employers may:

• Force tip pooling with managers or non-tipped staff
• Pay below minimum wage without meeting “tip credit” requirements
• Fail to track tips accurately
  
   

Off-the-Clock Work

If you're doing tasks before clocking in or after clocking out, like putting on gear, cleaning up, or attending meetings, you should be paid for that time.

Failure to Pay Minimum Wage

Some workers are paid per task or on commission and don’t end up earning the equivalent of minimum wage. This is illegal under the FLSA.

What Compensation Could You Be Entitled To?

If your employer has violated the FLSA, you may be entitled to:

• Back Pay for unpaid wages or overtime
• Liquidated Damages, which can double the amount of back pay
• Attorney’s Fees and legal costs
• Punitive Damages (in extreme cases)
   

In some cases, FLSA claims are part of collective actions (similar to class actions) where a group of employees sue together.

How Do I Know if My FLSA Rights Are Being Violated?

You may not even realize your employer is breaking the law. Here are some red flags to watch for:

• You’re regularly working more than 40 hours a week without extra pay
• You’re being told you’re “exempt,” but you don’t supervise anyone or make independent decisions
• You're being paid less than minimum wage after tips or deductions
• You’re asked to do work before or after your official shift
• Your employer doesn’t keep accurate time records
   

If any of this sounds familiar, it’s time to explore your legal options.

What to Do if You Suspect a Violation

If you think your employer may be violating the FLSA, here’s what you should do:

1. Start Tracking Your Time

Keep a record of when you start and end work each day, as well as any off-the-clock tasks. This evidence can be critical later.

2. Review Your Pay Stubs

Check your pay rate, overtime pay (if any), and hours worked. Look for discrepancies between what you worked and what you were paid.

3. Talk to a Wage & Hour Attorney at Morgan & Morgan

Don't try to fight this alone. An experienced employment law attorney can evaluate your case and help you get the compensation you’re owed.

How the FLSA Calculates Overtime

There are various ways in which overtime is calculated and this all depends on an employee’s classification, whether he/she is paid an hourly wage or an annual salary. All U.S.-based businesses are required to pay overtime to eligible staff who have worked over 40 hours in the workweek.

A workweek may vary for each individual or industry. For example, a retail sales employee may operate on a Saturday to Friday workweek, instead of a Monday to Sunday workweek. While this ranges across multiple fields, the FLSA sets the standard workweek limit at 40 hours.

All U.S.-based businesses are required to pay overtime to eligible employees who have worked over 40 hours in a workweek, known as “time-and-a-half.” This means employers must pay 1.5 times the amount of the employee’s regular rate should he/she exceed work hours in the week.

But employers are not permitted to average out hours over two or more weeks. For example, averaging a 60-hour workweek with a 20-hour workweek that totals a 40-hour week to evade overtime pay requirements is prohibited.

The FLSA Is Still Important – Let’s Keep It That Way

While the ultimate goals of the FLSA will never be obsolete, there are aspects of the statute that could be improved to ensure 21st century workers are fairly compensated.

One glaring example of this is the minimum wage. While a minimum wage is important to have, it hasn’t been increased frequently enough to keep up with inflation. In fact, when adjusted for inflation, the federal minimum wage peaked in 1968 at $8.68 (in 2016 dollars), according to the Pew Research Center. Pew also found that the current federal minimum wage of $7.25 has lost roughly 9.6 percent of its purchasing power since it was last increased in 2009.

Fortunately, 29 states, the District of Columbia, and nearly two dozen cities and counties have set their own higher minimums. For those not living in those states, though, it may even be difficult or impossible to afford the rent making $7.25 an hour.

Another update to the FLSA many workers would benefit from is a change in employee classification. Increasingly, the rise of the gig economy has led businesses to hire workers as independent contractors, who are not considered employees under the FLSA and therefore not entitled to many of the law's protections.

Many employees are misclassified as independent contractors and are not given a choice in the matter. In these cases, workers lose all the protections of the FLSA to which they’re entitled.

Misclassification is also an issue for bonafide employees with regard to overtime exemptions.

Employees will need to stand up for their rights with dedicated labor and employment attorneys to make sure businesses are following the FLSA. Some companies don't do things out of the goodness of their hearts, and if Congress is unwilling to compel them, it’ll be up to the people and attorneys working for the people to make sure company policies are in compliance with the FLSA.

Can I Be Fired for Filing an FLSA Claim?

No, you cannot legally be fired for filing an FLSA claim. The Fair Labor Standards Act contains anti-retaliation provisions that protect employees who assert their rights under the law. This includes:

• Filing a complaint about unpaid wages or overtime
• Participating in a wage and hour investigation
• Speaking up about wage violations in the workplace
   

If your employer retaliates against you, whether by firing you, demoting you, cutting your hours, or creating a hostile work environment—that’s illegal. You could be entitled to additional compensation for retaliation, including lost wages, emotional distress, and even punitive damages.

If you're worried about retaliation or think it may have already happened, it’s a good idea to speak with a wage and hour attorney right away. At Morgan & Morgan, we can help you understand your rights and take action to protect them.

How Far Back Can I Claim Unpaid Wages?

Under the Fair Labor Standards Act (FLSA), the general time limit for claiming unpaid wages is:

Two Years – Standard Statute of Limitations

Most FLSA claims must be filed within two years of the wage violation. That means if your employer failed to pay you properly for work you did more than two years ago, you typically can’t recover those wages.

Three Years – If the Violation Was Willful

If your employer knowingly violated the law (if they were aware of the rules but intentionally failed to follow them), the statute of limitations can be extended to three years. This is called a willful violation. Courts usually look for evidence that the employer either:

• Knew their actions were unlawful
• Or showed reckless disregard for the law
   

This extra year can make a huge difference when calculating unpaid wages and potential damages.

Even if you’re still working for the company, the clock is ticking. Every pay period that goes by without a claim could mean lost back pay. And if you’ve already left the job, don’t wait—the statute continues running from the date of each violation.

Know Your Worth. Fight for It.

Wage theft is one of the most common and most overlooked injustices in the American workplace. Employers may count on workers not knowing the law, or being too afraid to speak up.

But you don’t have to stay silent, and you don’t have to go it alone.

If you suspect your employer is violating the Fair Labor Standards Act, Morgan & Morgan is here to help. We’ll review your case for free and fight to get you the compensation you’re legally owed.

At Morgan & Morgan, we’ve been standing up for workers for more than 35 years. We’ve handled thousands of wage and hour cases, and as the largest personal injury law firm in the country, we have the size and resources to take on any employer—big or small.

Hiring one of our lawyers is easy, and you can get started in minutes with a free case evaluation.