FLSA
FLSA Basics: Minimum Wage, Overtime & Recordkeeping
The Fair Labor Standards Act sets the floor for minimum wage, overtime, and youth labor. Most small businesses are covered through enterprise or individual coverage. The biggest risks we see are misclassifying employees as exempt and not paying for all hours worked.
- Confirm who’s covered and who qualifies as exempt (executive, administrative, professional, etc.).
- Overtime is generally 1.5× the regular rate for hours over 40 in a workweek.
- Keep accurate time records—avoid off‑the‑clock work and auto‑deduct pitfalls.
- Retain payroll records for the required period (typically 3 years).
Quick checklist:
- Define your workweek in writing and apply it consistently.
- Use a timesheet system with approvals and audit trails.
- Review job descriptions vs. actual duties to validate exempt status.
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