Glossary term

FLSA

Fair Labor Standards Act

US federal law setting minimum wage, overtime, child labor, and exempt/non-exempt classification rules.

acronymHR & PeopleSenior

When you'd see it: Payroll, classification, and overtime decisions. The exempt-versus-nonexempt question comes straight from the FLSA.

Why it matters: The FLSA sets minimum wage, overtime, and who qualifies as exempt from overtime. Misclassifying an employee as exempt is a common and expensive compliance error.

Common mistakes: Assuming a salary makes someone exempt from overtime. Exemption depends on duties and a salary threshold, not just being salaried.

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