Did you know that employees in all U.S. states are protected under the federal Fair Labor Standards Act (FLSA) regarding their pay, in addition to specific protections provided on a state-by-state basis?

Knowing your rights and following the proper steps if your rights are violated can make all the difference in recovering what you may be owed.

What is the FLSA?

According to the U.S. Department of Labor, the FLSA establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in federal, state, and local government. In 2026, covered nonexempt workers are entitled to a minimum wage of not less than $7.25 per hour, and overtime pay at a rate not less than one and one-half times the regular rate of pay is required after 40 hours of work in a workweek.

The FLSA establishes the following:

• FLSA Minimum Wage: While the federal minimum wage is $7.25 per hour, many states also have minimum wage laws. In cases where an employee is subject to both state and federal minimum wage laws, the employee is entitled to the higher minimum wage.

• FLSA Overtime: Covered nonexempt employees must receive overtime pay for hours worked over 40 per workweek (any fixed and regularly recurring period of 168 hours – seven consecutive 24-hour periods) at a rate not less than one and one-half times the regular rate of pay. There is no limit on the number of hours employees 16 years or older may work in any work week. The FLSA does not require overtime pay for work on weekends, holidays, or regular days of rest, unless overtime is worked on such days.

• FLSA Tip Regulations: The FLSA allows employers who meet certain criteria to take a partial credit against their minimum wage obligations for tipped employees—those engaged in an occupation in which they customarily and regularly receive tips.

• Hours Worked: Hours worked ordinarily include all the time during which an employee is required to be on the employer’s premises, on duty, or at a prescribed workplace.

• Recordkeeping: Employers must display an official poster outlining the requirements of the FLSA. Employers must also keep employee time and pay records.

• Child Labor: These provisions are designed to protect the educational opportunities of minors and prohibit their employment in jobs and under conditions detrimental to their health or well-being.

Who Is Covered Under the FLSA?

All employees of certain enterprises having workers engaged in interstate commerce, producing goods for interstate commerce, or handling, selling, or otherwise working on goods or materials that have been moved in or produced for such commerce by any person, are covered by the FLSA, according to FLSA guidelines.

A covered enterprise is the related activities performed through unified operation or common control by any person or persons for a common business purpose and:

• whose annual gross volume of sales made or business done is not less than $500,000 (exclusive of excise taxes at the retail level that are separately stated);

• is engaged in the operation of a hospital, an institution primarily engaged in the care of the sick, the aged, or the mentally ill who reside on the premises; a school for mentally or physically disabled or gifted children; a preschool, an elementary or secondary school, or an institution of higher education (whether operated for profit or not for profit); or

• is an activity of a public agency.

Employees of firms not covered enterprises under the FLSA still may be subject to certain minimum wage, overtime pay, recordkeeping, and child labor provisions if they are individually engaged in interstate commerce or in the production of goods for interstate commerce, or in any closely related process or occupation directly essential to such production.

Tipped Employees

According to the FLSA:

• tipped employees are individuals engaged in occupations in which they customarily and regularly receive more than $30 a month in tips (the employer may consider tips as part of wages, but the employer must pay at least $2.13 an hour in direct wages); and

• the employer who elects to use the tip credit provision must inform the employee in advance and must be able to show that the employee receives at least the applicable minimum wage (see above) when direct wages and the tip credit allowance are combined (if an employee’s tips combined with the employer’s direct wages of at least $2.13 an hour do not equal the minimum hourly wage, the employer must make up the difference; also, employees must retain all of their tips, except to the extent that they participate in a valid tip pooling or sharing arrangement).

Employees vs. Independent Contractors

On Jan. 10, 2024, the U.S. Department of Labor published a final rule, Employee or Independent Contractor Classification Under the Fair Labor Standards Act, effective March 11, 2024, revising the Department’s guidance on how to analyze who is an employee or independent contractor under the Fair Labor Standards Act (FLSA). This final rule rescinds the Independent Contractor Status Under the Fair Labor Standards Act rule (2021 IC Rule, 86 FR 1168), that was published on January 7, 2021. Read more here.

Employee Breaks

While no federal law requires companies to offer breaks during work hours for meals or any other purpose, if a company chooses to allow break periods, any break under 20 minutes should be paid, and any over 30 minutes can be unpaid and classified as “off-the-clock,” according to workforce.com.

If a state has no laws regarding breaks, federal standards automatically apply. New York’s labor laws stipulate that employers must provide meal breaks of varying lengths based on the time and duration of the employee’s shift. Specifically, employers in New York State must provide all employees time off for meals, after working a certain number of hours. In general, employers must provide at least 30 minutes of unpaid time off if an employee works more than six hours.

If your employer automatically deducts mealtime from your pay, you should report that you worked through the break so that deduction is reversed. If the option does not exist, or if supervisors discourage you from using it, your employer is likely violating wage and hour rules.

Further, in New York state, if you receive a free meal, you are not required to work through it. And if you are working during a meal break and do not take a paid meal, the time must be compensated. However, if you are completely free from work duties during the meal period, it is not considered work time.

Additionally, employers in New York state must also provide certain employees with at least 24 consecutive hours of rest in any calendar week.

Resolve Your FLSA or Wage Violation Issue

If you have faced unpaid wages, lack of overtime, or other wage violations at work, know that you have rights, as well as options for taking action.

Sometimes, resolving a FLSA issue directly with your employer may be possible, even preferable. Start by addressing your concern with the human resources department or a manager. Request any owed wages or corrections to improper payments or other issues in writing and keep copies of these communications.

If this step doesn’t lead to a resolution, filing a formal claim may be necessary. Keep in mind that retaliation for filing a claim is illegal, and the Department of Labor offers protections against such actions. Filing a wage and hour claim is a way to seek justice for violations related to minimum wage, overtime, and other wage violations under labor laws. Knowing your rights and following the proper steps can make all the difference in recovering what you’re owed.

A knowledgeable employment attorney can help you gain an understanding of the unique difficulties each workplace conflict presents and work toward a solution that benefits you, no matter what state you are employed in. Tully Rinckey attorneys have the experience to assist both employees and employers in achieving their objectives, regardless of the matter, which may include discrimination, harassment, retaliation, or any other claim involving worker rights or employer responsibilities. Call 8885294543 or contact us online today for a consultation and get an advocate who will fight for your rights and help secure your career and your future.

Amanda Smith, Esq. is a Partner in Tully Rinckey PLLC’s Buffalo office, where she focuses her practice on Federal and State Employment and Labor Law.