Minimum Wage Regulations

• The FLSA establishes the federal minimum wage, which changes from time to time. On July 24, 2009, the minimum wages was established at $7.25 per hour. Employers are required to pay employees on the regular payday for that work period, and they are not allowed to make deductions from wages for things such as register shortages, uniforms or tools if those deductions reduce the wages below minimum wage. The FLSA does not regulate vacation or sick pay, and it does not require pay raises. It also does not guarantee that an employee will get meals or rest periods. However, these benefits may be required by other federal or state laws.
  
  

Overtime Wage Regulations

• The FLSA also requires that covered employees be paid overtime for any hours worked over 40 hours. Currently, the overtime rate is 1 1/2 times the employee's regular rate of pay. In calculating the 40 hours, employers are not required to count any time off from vacation, sick or holiday time. Overtime is only paid for hours actually worked over 40 hours. The employee cannot waive overtime pay, and employers cannot force an employee to agree to get paid at the regular rate. Also, employers cannot compensate employees for overtime through the use of "comp time," which is extra vacation time given for hours of overtime worked, except for some state and local government employees.
  
  

Coverage of the FLSA

• The FLSA regulations provide certain exemptions from the overtime pay requirements, the minimum wage requirements or both. These are narrowly defined exemptions, and businesses should consult with an attorney or with the Department of Labor do determine whether exemptions apply. Some examples of professions that are exempt from both minimum wage and overtime pay include executive and professional employees (such as teachers), employees of seasonal amusement or recreational establishments, employees engaged in newspaper delivery and farm workers. If an employee is found to be exempt, employers are not required to pay minimum wage, or they are not required to provide overtime pay.
  
  

Regulations for Employees Receiving Tips

• The FLSA also establishes salary guidelines for employees working in professions that regularly receive tips, such as servers and bartenders. To fall under this provision, the tipped employee must regularly receive more than $30 a month in tips. As of April 2011, the FLSA establishes that employers must pay these workers at least $2.13 in direct wages. The employee must report his tips to the employer, who must ensure the employee is making the applicable minimum wage, taking into account the combined total of direct wages and tips. If the employee did not make minimum wage, the employer must make up the difference.