What does the Fair Labor Standards Act (FLSA) establish?

The Fair Labor Standards Act (FLSA) serves as a critical piece of legislation that sets forth important standards regarding minimum wage and overtime pay for workers in the United States. This Act ensures that employees earn at least a federally mandated minimum wage for their work and are compensated with overtime pay—typically at one and a half times their regular rate—for hours worked beyond a standard workweek, which is generally defined as 40 hours.

By establishing these financial standards, the FLSA plays a crucial role in protecting workers from exploitation and promoting fair compensation practices within the workforce. It covers various workers, including those in hospitality roles, thereby directly impacting how wages are structured and maintained across different sectors, including hotels, restaurants, and other allied establishments.

Other options, while relevant to certain aspects of human resources management, do not pertain directly to the essence of the FLSA, which is primarily focused on wage-related issues rather than staffing policies, recruitment strategies, or retirement plans.