What Every HR Generalist Should Know About Fair Labor Standards Act (FLSA)

3/16/2026

The Fair Labor Standards Act (FLSA) is a cornerstone of U.S. employment law, setting standards for wages, overtime, and recordkeeping.

For HR generalists, understanding the FLSA is non-negotiable. From employee classification to overtime, minimum wage, and recordkeeping, FLSA compliance protects employees and the organization. By staying informed and implementing best practices, HR professionals ensure fair treatment, avoid legal pitfalls, and contribute to organizational success.

This article covers the key points every HR professional should know.

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What Is the FLSA?

The FLSA, enacted in 1938, applies to most private and public employers in the U.S., though certain exemptions and thresholds exist. The FLSA regulates:

• Minimum wage
• Overtime pay
• Child labor
• Recordkeeping requirements

Minimum Wage Requirements
HR generalists must ensure employees are paid at least the federal minimum wage:

• Many states and cities have higher minimum wages, so HR must track local laws
• Employers cannot pay less than the applicable minimum, even with tips or commissions

Overtime Rules
FLSA requires that non-exempt employees be paid 1.5 times their regular rate for hours worked over 40 in a workweek. Key points:

• Non-exempt vs. exempt employees
• Exemptions include executive, administrative, professional, and outside sales roles

Employee Classification
Misclassification is one of the most common FLSA compliance issues. HR generalists should know:

• Exempt employees: Not eligible for overtime
• Non-exempt employees: Eligible for overtime
• Criteria for exemption include salary basis, salary level, and job duties
• Regularly review job descriptions to ensure compliance

Recordkeeping Requirements
HR must maintain accurate employee records, including:

• Hours worked and wages paid
• Job titles and duties
• Payroll deductions
• Start and end dates of employment

Child Labor Provisions
The FLSA restricts work for minors under 18:

• Limits hours for employees under 16
• Restricts hazardous occupations for employees under 18
• HR must ensure schedules comply with federal and state rules

State and Local Law Interactions
FLSA sets the federal baseline, but state and local laws may impose stricter requirements:

• Higher minimum wages
• Additional overtime rules
• Mandatory meal or rest breaks

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Consequences of Non-Compliance

Failure to comply with FLSA can lead to:

• Wage and overtime back pay
• Fines and penalties
• Employee lawsuits
• Damage to the organization’s reputation

Bottom line, proactive HR management is the best way to avoid these risks.