Fair Labor Standards Act (FLSA)
The Fair Labor Standards Act (FLSA) sets certain regulations for business operations and employment practices for businesses. Many companies across the country are required to comply with the standards of the FLSA, including the minimum wage law and restrictions against child labor. Knowing these limits is key to running your business smoothly and avoiding legal trouble in the future.
FLSA Basics
The FLSA includes several regulations for weekly working hour limits and pay rates. Below are some of the most notable standards included in the FLSA:
- Sets national wage
- Established time-and-a-half wage for overtime hours
- Prohibits child labor and most hiring of minors
- Made it illegal to pay women less than men for the same work (in the Equal Pay Act amendment to the FLSA)
Complying with the FLSA
When establishing a new business, it is important to determine if you are required to comply with the FLSA. If so, be sure to review all of its standards so that you do not mistakenly violate them. A business that does not comply with the FLSA, intentionally or not, can be held legally liable for employees’ losses. You could be sued for underpaying workers, failing to pay eligible workers overtime, or other violations that could lead to a costly lawsuit.
Contact Us
When setting up your new business, it is important to take into account all aspects of the law that can affect your venture. To learn more about forming a new business as a legal entity, contact the Texas business structure experts of Texas Legal Entities at 512-472-2431.
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