The Fair Labor Standards Act (FLSA) is a federal law that sets nationwide rules for minimum wage, overtime pay, recordkeeping, and child labor. It applies to employees and employers across the United States, including Georgia, and often determines whether workers are being paid lawfully. While states may have their own wage laws, federal FLSA protections usually control when the two conflict.
If you are unsure whether your employer must follow the FLSA or whether your pay complies with it, we explain the law below.
What Is the Fair Labor Standards Act?
The FLSA establishes baseline workplace protections, including:
The law applies nationwide. Employers must comply with both federal and state wage laws, but when the laws differ, the rule that provides greater employee protection generally applies.
Which Employers Are Covered by the FLSA?
The FLSA applies to employers who meet at least one of the following criteria:
The business has $500,000 or more in annual gross sales, or
The business is engaged in interstate commerce
Interstate commerce is defined very broadly. Courts have found that covered activities under the FLSA include:
Sending or receiving mail across state lines
Processing credit card payments
Selling goods or services online
Communicating with out-of-state vendors or customers
As a result, many small and mid-sized businesses are covered even if they operate primarily within Georgia.
Minimum Wage Rules Under the FLSA (2026)
As of 2026, the federal minimum wage remains $7.25 per hour. Georgia’s state minimum wage is $5.15 per hour, but most employers must follow the higher federal rate because they are covered by the FLSA.
Tipped Employees
For employees who regularly receive tips:
The federal tipped minimum wage is $2.13 per hour
Tips plus hourly wages must equal at least $7.25 per hour
If tips fall short, the employer must make up the difference
Failing to do so is a common FLSA violation.
Overtime Pay Requirements
Under the FLSA, most non-exempt employees must receive overtime pay at one-and-one-half times their regular rate for hours worked over 40 in a single workweek.
Key points to know:
Overtime is calculated weekly, not daily
Employers cannot average hours across multiple weeks
Job title alone does not determine overtime eligibility
Misclassifying employees as exempt or as independent contractors remains one of the most frequent wage violations.
Child Labor Restrictions Under the FLSA
The FLSA strictly regulates when and how minors may work.
Children under 14 generally may not work
Workers aged 14 and 15 face limits on:
During the school year, work hours are more restricted
From June 1 through Labor Day, evening hours may be extended to 9 p.m.
Hazardous jobs are prohibited for minors regardless of age limits.
Common FLSA Violations
FLSA violations can expose employers to serious consequences, including back pay, penalties, and legal action. Common violations include:
Failing to pay overtime
Paying below minimum wage
Improper tip credit practices
Off-the-clock work
Employee misclassification
Inadequate payroll records
The U.S. Department of Labor may pursue civil enforcement actions, and in certain cases, violations can lead to criminal penalties.
Are There Exceptions or Exemptions?
Yes. The FLSA contains numerous exemptions that depend on job duties, pay structure, and industry, not just salary level.
Some employees may be exempt from:
Because exemptions are narrowly interpreted, employers often misapply them. Whether an exemption applies is highly fact-specific and should be evaluated carefully.
What If You Think Your Rights Are Being Violated?
If your pay does not reflect the hours you work, or if your employer tells you that wage laws do not apply without explanation, it is worth asking questions. FLSA protections are broader than many workers realize, and violations often go unnoticed for years.
Talk to a Georgia Employment Rights Attorney Today
At Pankey & Horlock, we help employees understand and enforce their rights under federal and Georgia wage laws. Whether your concern involves unpaid overtime, minimum wage violations, misclassification, or tip-related issues, we take a practical, thorough approach to evaluating potential claims.
We will review your work situation, explain how the FLSA applies, and help you determine what steps make sense for your circumstances. If your employer failed to comply with the law, we are prepared to pursue accountability through negotiation or, when necessary, legal action. Contact us today for a consultation.