| The Fair Labor Standards Act, or FLSA, was first | | | | increase from the Fair Minimum Wage Act in July |
| established in 1938. The FLSA is a US federal law | | | | 2007. This minimum wage provision is not at |
| which governs several aspects of employment. | | | | simple as it sounds. For example, workers who |
| Most notably, the FLSA established a national | | | | receive tips (waiters in a restaurant, for example) |
| minimum wage standard, outlined rules for | | | | are held to a different wage standard - they have |
| overtime pay, and prohibited most forms of child | | | | a minimum wage of just over $2 an hour, |
| labor. Since its creation 70 years ago, the FLSA | | | | provided that this standard wage plus their tips |
| has undergone many major revisions. One recent | | | | averages $5.85 or higher an hour. |
| amendment was passed by Congress in 2007. | | | | The second main role of the FLSA is the |
| This Fair Minimum Wage Act will incrementally | | | | delineation of overtime pay rules. According to the |
| increase the minimum wage standard up to $7.25 | | | | FLSA, workers must be paid time and a half for |
| an hour by the year 2009. | | | | overtime hours. In simplified form, this means that |
| The FLSA covers all employees engaged in | | | | a worker who puts in 50 hours in a single work |
| interstate commerce or employed by a company | | | | week must be paid 1.5 times his normal wage for |
| that engages in or produces goods for interstate | | | | the 10 hours over 40 that he worked. Not all |
| commerce. Under the FLSA, the national minimum | | | | employees are covered by this portion of the |
| wage is currently set at $5.85, after the latest | | | | FLSA. |