Fair Labor Standards Act of 1938

The FLSA covers approximately 143 million workers. The federal minimum wage has been $7.25 since 2009, though 30 states have set higher minimums. Overtime provisions generate an estimated $1.2 trillion in additional worker compensation annually. The Act has been amended over 20 times, with minimum wage increasing from $0.25 in 1938 to $7.25 today.

Child labor decreased by over 90% following FLSA enactment combined with state laws. The 40-hour workweek became the American standard, reshaping family life and leisure time. Minimum wage laws disproportionately benefit women and minority workers, who make up 62% of minimum wage earners. The Act established the principle that workers are entitled to fair compensation for their labor.

The Wage and Hour Division recovers over $250 million annually in back wages for workers. The division conducts approximately 25,000 compliance investigations per year. Misclassification of employees as independent contractors remains the largest area of violations. Over 8,000 employers are found in violation annually.