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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.

Primary Authority
Federal FLSA requirements, Department of Labor regulations, and applicable wage-and-hour enforcement standards.
Compliance Deadline
Maintain accurate time, wage, payroll, and employment records and comply with applicable wage-and-hour requirements.

Regulatory Breakdown & Key Parameters

ParameterStatutory ProvisionCompliance Requirement
Federal Minimum Wage29 U.S.C. § 206$7.25/hour federally; higher applicable state or local rates may control
Overtime29 U.S.C. § 207Generally 1.5× the regular rate for covered non-exempt employees after 40 hours in a workweek
Exemptions29 U.S.C. § 213 / 29 CFR Part 541Exemption depends on the applicable salary, duties, and occupation-specific requirements
Child Labor29 U.S.C. §§ 212, 213(c)Age-, hours-, occupation-, and exception-specific restrictions apply
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Official Government Resource

Always consult official government portals and accredited legal/tax professionals before filing formal applications or legal paperwork.

Frequently Asked Questions (FAQ)

The federal minimum wage under the FLSA is $7.25 per hour. When a state or local law requires a higher minimum wage for the employee, the employer generally must pay the higher applicable rate. For 2026, examples include California at $16.90 per hour, Washington at $17.13 per hour, and New York City at $17.00 per hour, although higher local or industry-specific rates can apply.

Under 29 U.S.C. § 207, non-exempt employees must receive overtime pay for all hours worked over 40 in a single workweek at a rate not less than one and one-half times (1.5×) their regular rate of pay.

Non-exempt employees generally receive the FLSA minimum-wage and overtime protections. Employees qualifying for an exemption must satisfy the applicable salary and duties requirements, or another specific statutory exemption. For the executive, administrative, and professional exemptions, the current federal standard salary level is generally $684 per week ($35,568 annually), together with the applicable duties test; certain occupations, including bona fide teachers, doctors, lawyers, and outside sales employees, are subject to different rules. Certain computer employees may qualify under a salary basis or an hourly rate of at least $27.63 per hour.

FLSA protections can apply to H-1B, L-1, and other foreign workers in the United States regardless of citizenship or immigration status when the employee and employment are covered by the Act. Separately, H-1B employers must comply with the H-1B Labor Condition Application requirements and generally pay the higher of the required prevailing wage or the employer's actual wage for similarly employed workers. The H-1B required-wage obligation is separate from the FLSA minimum-wage and overtime rules.

An employee may contact the U.S. Department of Labor's Wage and Hour Division about suspected FLSA violations or, where permitted, bring a private action under 29 U.S.C. § 216(b). Available remedies can include unpaid minimum wages or overtime, an equal amount as liquidated damages in appropriate cases, and reasonable attorney's fees and costs. Liquidated damages are not guaranteed in every case because the statute provides a good-faith defense under certain circumstances.

The FLSA restricts the hours and occupations in which workers under 16 may be employed, while workers under 18 generally may not perform occupations declared hazardous by the Department of Labor. There are important age, school-hour, agricultural, and other statutory exceptions. Current federal civil monetary penalties for child-labor violations can reach $16,035 per violation, with substantially higher maximum penalties when a violation causes the death or serious injury of a minor.
Official U.S. Government References

• U.S. Department of Labor Wage & Hour Division: dol.gov/whd/flsa
• U.S. Code Title 29 (Labor): law.cornell.edu/uscode/29