U.S. Labor Law & Fair Labor Standards Act (FLSA) Guide 2026
Guide to U.S. federal labor law under the FLSA, including the $7.25 federal minimum wage, overtime for covered non-exempt employees, current exemption rules, H-1B wage protections, child-labor restrictions, and remedies for wage violations.
Comprehensive Executive Summary
This guide explains the principal federal requirements of the Fair Labor Standards Act, including minimum wage, overtime, exemption tests, child-labor rules, H-1B wage obligations that operate alongside the FLSA, and the principal remedies available for covered wage violations. State and local laws may provide greater protections.
Important 2026 Federal Exemption Rule
The Department of Labor's 2024 overtime rule was judicially vacated in November 2024. In 2026, the operative federal EAP salary threshold is therefore $684 per week ($35,568 annually), with a $107,432 highly compensated employee threshold. Meeting the salary amount alone does not make an employee exempt; the applicable duties test must also be satisfied, and some occupations follow separate exemption rules.
Federal vs. State Labor Laws
The FLSA establishes federal minimum standards. States and local governments may impose higher minimum wages, additional overtime protections, paid-leave requirements, meal or rest rules, pay-notice obligations, and other employee protections. Employers generally must comply with the provision that provides the greater protection where overlapping laws apply.
H-1B Workers and the FLSA
H-1B workers can receive FLSA protections when the employment is covered, while H-1B employers also have separate Labor Condition Application wage obligations. The H-1B required wage is generally the higher of the actual wage or prevailing wage, so the H-1B rule should not be described simply as a prevailing wage requirement.
Regulatory Breakdown & Key Parameters
| Parameter | Statutory Provision | Compliance Requirement |
|---|---|---|
| Federal Minimum Wage | 29 U.S.C. § 206 | $7.25/hour federally; higher applicable state or local rates may control |
| Overtime | 29 U.S.C. § 207 | Generally 1.5× the regular rate for covered non-exempt employees after 40 hours in a workweek |
| Exemptions | 29 U.S.C. § 213 / 29 CFR Part 541 | Exemption depends on the applicable salary, duties, and occupation-specific requirements |
| Child Labor | 29 U.S.C. §§ 212, 213(c) | Age-, hours-, occupation-, and exception-specific restrictions apply |
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Official Government Resource
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Related US Tools & Guides
Frequently Asked Questions (FAQ)
• U.S. Department of Labor Wage & Hour Division: dol.gov/whd/flsa
• U.S. Code Title 29 (Labor): law.cornell.edu/uscode/29