The U.S. Department of Labor enforces the Fair Labor Standards Act (FLSA), which sets basic minimum wage and overtime pay standards. These standards are enforced by the Department's Wage and Hour Division.

Minimum Wage

• Current Minimum Wage: $7.25 per hour
  • Applies to workers covered by the FLSA
• Overtime Pay: Not less than one and one-half times regular rate of pay
  • Required after 40 hours of work in a workweek.
  • Certain exemptions apply to specific types of businesses or specific types of work.
• Minimum Wage by State (interactive map)

Fair Labor Standards Act

While the FLSA does set the minimum wage for certain workers, it does not, however, require any of the following:

• Severance pay
• Sick leave
• Vacations
• Holidays

The FLSA does not address nonproduction cash bonuses, payments that are not production-based. These bonuses are generally a matter of agreement between an employer and an employee (or the employee's representative).

Benefits such as educational assistance, life insurance, or travel accident insurance are generally a matter of agreement between an employer and an employee (or the employee's representative).

In addition to the FLSA, the Wage and Hour Division enforces other labor laws related to wage payment. Among these are:

• The Davis-Bacon and Related Acts, which require payment of prevailing wage rates and fringe benefits on federally-financed or assisted construction
• The Service Contract Act, which requires payment of prevailing wage rates and fringe benefits on contracts to provide services to the federal government
• The Contract Work Hours and Safety Standards Act, which sets overtime standards for most federal service contracts, federally funded construction contracts, and federal supply contracts over $100,000
• The Walsh-Healey Public Contracts Act, which requires payment of minimum wage rates and overtime pay on federal contracts to manufacture or provide goods to the federal government