This important Act created standards of overtime pay, minimum wages, and payroll record keeping. It applies to any business entity that does at least $500,000 in annual business across interstate lines, as well as all schools and governments. It also covers any domestic service workers who work at least eight hours per week and receive a minimum amount in annual wages. Individual positions that are exempt from its provisions include “white collar” salaried employees, fishermen, newspaper deliverers, farmers, and casual babysitters. Individual positions that are exempt only from its overtime pay provisions include railroad employees, certain broadcasting positions, seamen on American vessels, and news editors (the list is quite detailed, and longer than presented here).
The Act (as amended) requires that covered employees be paid at least the minimum wage of $5.15 per hour, or at least $2.13 to employees who also receive tips. Piece-rate pay is also legal, but the resulting pay must at least match the minimum wage. If an applicable state law requires a higher hourly rate, then the state law will prevail. Overtime pay of one and one-half times the regular rate of pay is also required for all hours worked in excess of 40 in a work week.
The Act prohibits the shipment of goods in interstate commerce that were produced in violation of these provisions. Employees may file a complaint with the Wage and Hour Division of the Department of Labor, or can file suit individually to obtain up to three years of unpaid back pay. The Wage and Hour Division can bring criminal proceedings against a willful violator and issue fines of up to $1,000 per violation.