What does Fair Labor Standards Act of 1938 mean? Read on to discover the definition & meaning of the term Fair Labor Standards Act of 1938 - to help you better understand the language used in insurance policies.
Fair Labor Standards Act of 1938
A law that established a national, hourly minimum wage and promulgated eligibility rules for overtime pay. The Wage and Hour Division of the U.S. Department of Labor administers the law, and virtually all wage and hour claims cite a violation of the FSLA. Wage and hour claims allege that workers classified by employers as "exempt" (and therefore ineligible for overtime pay), are in fact, entitled to overtime pay. Wage and hour claims are a serious exposure for employers; a number of class action wage and hour claims have settled for more than $10 million.
We hope the you have a better understanding of the meaning of Fair Labor Standards Act of 1938.