Tim Coffield | FLSA Free and Clear Rules: Employees Must Receive Minimum and Overtime Wages Finally and Unconditionally

The Fair Labor Standards Act requires covered employers to pay minimum wages and overtime compensation to certain categories of employees. These requirements involve a determination as to the employee’s regular or overtime hourly rate of pay. As explained below, FLSA regulations provide that, generally speaking, fees, expenses or other charges that the employer requires the employee to pay directly or indirectly to the employer or to another person for the employer’s benefit should be deducted from the employee’s wages when determining whether the employer has met the FLSA’s minimum wage and overtime wage requirements. 

Statutory Background

The FLSA generally requires covered employers to pay non-exempt employees at least the required minimum hourly wage. 29 U.S.C. § 206. The FLSA further generally requires covered employers to pay non-exempt employees overtime wages for hours worked over 40 in a workweek at a rate not less than one and one-half times the regular rate at which the employee is employed. 29 U.S.C. § 207. 

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