Who Enforces Wages?

• The Hour and Wage Division of the Department of Labor performs many functions, but the Fair Labor Standards Act and Family and Medical Leave Act are the two most important pieces of legislation that this division enforces. The FSLA determines minimum wage, overtime standards and child labor laws, three critical regulations that govern just about any business.
  
  

Minimum Wage

• The United States has two different minimum wages, one declared by the federal government and one delegated to the states. The states may raise their minimum wage above the federal limit but may not lower it below that wage set by the federal government. When a state declares a higher minimum wage, the state law supersedes federal law. Minimum wage does not increase automatically, as Congress must pass legislation for each increase.
  
  

Exceptions to Minimum Wage

• The minimum wage law of the FLSA applies only to businesses that earn $500,000 or more per year, except for employees in those businesses who perform actions related to interstate commerce. Businesses may lower the hourly wage--historically to a federal minimum of $2.13 per hour--to employees who earn tips. Businesses may also temporarily pay below minimum wage for the first 90 days of employment to employees younger than 20.
  
  

Overtime

• If an employer limits you to 39 hours per week, the company is likely trying to avoid federal overtime laws. The overtime portion of the FLSA requires that employers pay time-and-a-half for any work over 40 hours during the seven-day workweek. The workweek does not necessarily start on Monday; companies may start a workweek on any day. Companies may not average hours over two or more weeks. Some companies on two-week pay periods will try to schedule an excessive amount of hours one week and then zero the next week to declare the person worked less than 40 hours a week.
  
  

Wage Garnishment

• The courts may deduct wages from your paycheck, usually for unpaid debts or child support violations, but only up to a certain amount. The Division of Hour and Wage enforces the Consumer Credit Protection Act, which authorizes wage garnishment up to 25 percent for any income excluding tips and prevents employers from terminating workers due to salary withholding for debts.