WASHINGTON, July 16 — The Fair Labor Standards Act of 1938, codified at 29 U.S.C. § 203, remains the bedrock of federal wage and hour law in the United States, establishing the right to a minimum wage and overtime pay at a rate of time-and-a-half for any hours worked beyond forty in a single workweek. Enacted by the 75th Congress and signed into law by President Franklin D. Roosevelt, the FLSA is widely regarded as the last major legislative achievement of the New Deal era.
The statute also prohibits the employment of minors in what it defines as “oppressive child labor.” Strategically, the law applies to employees engaged in interstate commerce or those employed by an enterprise engaged in commerce or in the production of goods for commerce, unless the employer can successfully claim an exemption from coverage. This jurisdictional framework has shaped the broader stakes of labor litigation for decades, as courts continue to interpret the scope of interstate commerce in an increasingly digital and service-oriented economy.
Minimum Wage and Overtime Provisions
The federal minimum wage, a key provision of the FLSA, has held steady at $7.25 per hour since 2009. States retain the authority to set higher minimum wages to account for local cost-of-living conditions, and many have done so, creating a patchwork of wage floors across the country. The calculus for employers operating in multiple states involves navigating these varying standards while remaining compliant with the federal baseline.
Overtime pay under the FLSA requires an increased rate for every hour worked beyond forty hours per week. This provision has been a frequent subject of litigation, as disputes arise over employee classification, exempt versus non-exempt status, and what constitutes compensable working time.
The law does not preempt state overtime statutes that offer greater protections, adding another layer of complexity to compliance.
Child Labor Restrictions
The child labor provisions of the FLSA generally set the minimum working age at 14 to 15 years, with specific exemptions for non-hazardous occupations. The entertainment industry, for example, permits children under 14 to work under strict regulations governing schooling requirements and hour limits. These rules reflect the New Deal-era concern with protecting young workers from exploitation while allowing limited participation in certain fields.
What this signals from a policy perspective is the enduring tension between worker protection and economic flexibility. The FLSA has been amended over time, but its core structure—minimum wage, overtime, and child labor restrictions—remains intact.
It continues to govern wage and hour standards for millions of American workers.
Looking Ahead
As of July 2026, the FLSA remains a foundational statute in U.S. labor law, with no major federal amendment to the minimum wage since 2009. The broader stakes for policymakers involve whether to adjust the federal floor, expand overtime eligibility, or tighten child labor exemptions in light of changing work patterns. The strategic question for the current administration and Congress is whether the law, as written nearly nine decades ago, still fits the modern American economy.
