Fair Labor Standards Act (FLSA) of 1938
A law that established a national, hourly minimum wage and also promulgated
eligibility rules for overtime pay. The law is administered by the Wage and
Hour Division of the U.S. Department of Labor 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.