State Employment Law Vs. Federal Law

Employers must be aware of two sets of employment and labor laws when running their businesses. Federal law, specifically the Fair Labor Standards Act, establishes rules for wages, overtime and child labor. State labor codes may modify or expand on federal laws in favor of the employee, leaving employers to figure out which set of laws that apply.

Wages

The Fair Labor Standards Act has set the minimum wage at $7.25 per hour as of 2011. States may set their own minimum wages or go with the federal hourly wage. In 2011, 17 states had higher minimum wages than the federal rate, led by Washington at $8.67 an hour. Another 24 states used the federal minimum wage. Arkansas, Minnesota, Georgia and Wyoming had lower minimum wages than the federal number. Alabama, Louisiana, Mississippi, South Carolina and Tennessee did not have a minimum wage.

Overtime

Under Fair Labor Standards Act guidelines, overtime is work in excess of 40 hours per week. Employers owe employees, with the exception of those whom the FLSA classifies as exempt, 1.5 times their regular rate of pay for overtime hours. Many states have the same provision in their labor laws. Others have no overtime laws, meaning employers must pay overtime only if their business meets the criteria for FLSA coverage. California requires double an employee's usual pay rate for hours exceeding 12 per day.

Child Labor

The FLSA restricts the available hours and occupations for minors. Designated hazardous occupations are off limits to anyone under age 18. Those younger than 16 may work only limited hours per days and week. States may have more or less restrictive hour limits than the FLSA mandates, and many require employers to provide meal periods to minors. The FLSA has no break provisions.

Breaks

With respect to adult employees, the FLSA does not require employers to provide workday breaks. About 20 states, however, have provisions making meal breaks mandatory. The usual requirement is a 30-minute meal break for full-time employees. The laws typically allow the break to be unpaid as long as employers do not force employees to do any job-related activities during the break.

Coverage

When federal and state laws differ, such as regarding the minimum wage, employers generally must apply the law that is better for the employees' welfare. For small employers, however, federal laws may not apply. FLSA provisions cover employers who do at least $500,000 a year in gross sales or whose business involves interstate commerce of any type, as well as all schools and hospitals. State laws either exclude no employers or only those with only a small handful of employees.

References

• U.S. Department of Labor: Minimum Wage Laws in the States
• U.S. Department of Labor: Handy Reference Guide to the Fair Labor Standards Act
• National Conference of State Legislatures: State Laws on Work Hours and Overtime
• U.S. Department of Labor: Youth Rules! Employer's Pocket Guide on Youth Employment
• National Conference of State Legislatures: State Child Labor Laws
• U.S. Department of Labor: Minimum Length of Meal Period Required Under State Law for Adult Employees in Private Sector

Resources

• U.S. Department of Labor: Coverage Under the Fair Labor Standards Act (FLSA)