What is the federal law that governs minimum wage and overtime pay?

Study for the AIPB Mastering Payroll Exam. Review flashcards and questions with explanations. Prepare effectively and boost your confidence!

The Fair Labor Standards Act of 1938 is the federal law that establishes minimum wage, overtime pay, recordkeeping, and youth employment standards. Under this Act, employers are required to pay their employees a minimum wage for their work, as well as overtime pay for hours worked over 40 in a workweek, unless they are exempt from these provisions. The Act was designed to protect workers and ensure that they receive fair compensation for their labor, thus playing a crucial role in labor standards in the United States.

Other laws mentioned, such as the Equal Pay Act of 1963, focus specifically on prohibiting wage discrimination based on gender, while the Occupational Safety and Health Act is primarily concerned with workplace safety and health regulations. The Family and Medical Leave Act addresses unpaid leave for family and medical reasons but does not govern wage or overtime issues. Therefore, the Fair Labor Standards Act is the correct choice for governing minimum wage and overtime pay.

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