This page covers what the Fair Labor Standards Act (FLSA) asks of employers, the 2026 figures and changes still in motion. Basics are in the FLSA overview.
What the law requires
| Requirement | In plain words | Where it comes from |
|---|---|---|
| Minimum wage | Pay non-exempt covered employees at least the federal minimum | Sec. 206(a) |
| Overtime | 1.5 times the regular rate for hours over 40 in a fixed 168-hour workweek; no averaging across weeks | Sec. 207(a) |
| Regular rate | Nondiscretionary bonuses go into the overtime rate | 29 CFR 778.208 |
| Exempt pay | For executive, administrative and professional staff, a salary of at least $684 a week plus a duties test | 29 CFR 541.600 |
| Breaks | Rests of about 5 to 20 minutes are paid; a real meal period need not be paid. Federal law requires neither | 29 CFR 785.18-.19 |
| Records | Payroll records 3 years; time cards, rate tables and schedules 2 years | 29 CFR 516.5-.6 |
| Poster | Display the current poster (revised April 2023) | DOL poster page |
| Tipped staff | Tell employees about a tip credit in advance; employers, managers and supervisors may not keep tips | Sec. 203(m)(2) |
| Retaliation | No retaliation against someone who files or joins a complaint | Sec. 215(a)(3) |
Key numbers and dates
| Item | Amount or date | Year in force | Source |
|---|---|---|---|
| Federal minimum wage | $7.25 an hour since July 24, 2009; the higher of federal or state applies | 2026 | DOL minimum wage page |
| Tipped cash wage | $2.13 an hour | 2026 | Sec. 203(m); 29 CFR 531.59 |
| Maximum tip credit | $5.12 an hour ($7.25 minus $2.13) | 2026 | Derived from Sec. 203(m) |
| Exempt salary level | $684 a week ($35,568 a year) | 2026 | 29 CFR 541.600 |
| Back-pay suit window | 2 years; 3 years if willful | Current statute | 29 U.S.C. 255 |
Source: U.S. Department of Labor, 91 FR 27833
Recent and pending changes
- Dec 29, 2022 (final): the PUMP Act added Sec. 218d: break time and a private space, not a bathroom, to express milk for 1 year after a birth. Employers under 50 workers may claim undue hardship.
- Nov 15 and Dec 30, 2024 (final): two Texas federal courts vacated the 2024 salary rule. The appeals were dismissed in May 2026, and a DOL amendment effective May 15, 2026 restored the $684 text.
Penalties and enforcement
The Wage and Hour Division enforces the FLSA, and workers can sue on their own. A matter can start with a WHD investigation, often after a worker complaint, or with a demand letter or a lawsuit, including a collective action. DOL made no 2026 inflation adjustment, so the dollar maximums below are the 2025 amounts.
| Tier | What can follow | Maximum in force in 2026 |
|---|---|---|
| Back pay | Unpaid wages, an equal amount as liquidated damages (a court may reduce it for good faith) and attorney fees | Set by statute |
| Tip retention | Keeping employee tips | $1,409 |
| Repeated or willful pay violation | Minimum wage or overtime | $2,515 per violation |
| Child labor | Standard violation | $16,035 |
| Child labor, injury or death | Violation causing serious injury or death | $72,876 |
| Child labor, willful or repeated, injury or death | Highest tier | $145,752 |
Next, see the checklist and FAQs, employee vs independent contractor and the tips and overtime deduction.
Official sources
- U.S. Department of Labor: Minimum wage
- U.S. Department of Labor: Civil money penalties
- U.S. Department of Labor: Recordkeeping (Fact Sheet 21)
- U.S. Department of Labor: FLSA poster
This page is a plain-language summary. The official source controls if there is any difference.