FLSA (Fair Labor Standards Act)

What Is the FLSA?

The Fair Labor Standards Act (FLSA) is the foundational federal labor law in the United States. Enacted in 1938, it sets the rules for minimum wage, overtime pay, recordkeeping requirements, and child labor protections. If you employ hourly workers — or any non-exempt employees — the FLSA governs how you pay them.

The law is enforced by the Wage and Hour Division of the U.S. Department of Labor, and violations can result in back pay, penalties, and litigation. For businesses managing hourly workforces, understanding the FLSA isn't optional — it's operational.

What the FLSA Requires

• Minimum wage — The current federal minimum wage is $7.25/hour, though many states and cities set higher minimums. Employers must pay whichever is higher.
• Overtime pay — Non-exempt employees must receive 1.5x their regular rate for hours worked beyond 40 in a workweek.
• Recordkeeping — Employers must maintain accurate records of hours worked, wages paid, and other employment data.
• Child labor protections — Restrictions on the types of work and hours that minors under 18 can perform.

Exempt vs. Non-Exempt

The FLSA divides workers into two categories: exempt (not entitled to overtime) and non-exempt (entitled to overtime). Most hourly workers are non-exempt. Exempt status typically requires meeting specific salary and duties tests — usually salaried employees in executive, administrative, or professional roles.

Misclassifying a non-exempt worker as exempt is one of the most common — and costly — FLSA violations. If you're not sure whether a role qualifies for exemption, consult with a qualified employment attorney.

FLSA and Temporary or Flex Workers

The FLSA applies regardless of how you label the employment relationship. flex workers, flex workers, seasonal staff, and part-time employees are all covered. If a non-exempt worker logs more than 40 hours in a week — even across multiple assignments — overtime rules apply.

For businesses using staffing agencies or platforms, the question of who's responsible for FLSA compliance depends on the employment structure. Consult with a qualified employment attorney or payroll professional to understand your specific obligations.

FLSA Compliance on GigSmart

GigSmart's platform is designed with compliance in mind. G-Force tracks hours for your core team with built-in clock-in/clock-out and timesheet management. G-Flex shifts are posted with clear pay rates and hours, giving both businesses and workers transparency into compensation before work begins.

Accurate time tracking is the foundation of FLSA compliance — and it's built into every GigSmart workflow.