Utah General Contractors - Business and Law Practice Exam

What Federal law outlines minimum wage and overtime requirements for employers?

1. Fair Labor Standards Act

2. Employee Retirement Income Security Act

3. Workers Compensation Act

4. Occupational Safety and Health Act

The correct answer is: Fair Labor Standards Act

The Fair Labor Standards Act (FLSA) is the federal law that establishes minimum wage and overtime pay standards for employees in the private sector and in federal, state, and local governments. It was enacted to protect workers from unfair labor practices and to ensure they receive fair compensation for their labor. Under this act, employees are entitled to a minimum wage for every hour worked in a workweek, as well as overtime pay at a rate not less than one and a half times their regular rates of pay for hours worked over 40 in a workweek. This act is crucial for maintaining equitable pay practices and ensuring that workers receive adequate compensation for their work, thus contributing significantly to the financial security of American families. Other acts mentioned, such as the Employee Retirement Income Security Act, focus on retirement plans and benefits, while the Workers Compensation Act addresses workplace injuries, and the Occupational Safety and Health Act pertains to workplace safety standards. Each of these acts serves a specific purpose but does not cover minimum wage and overtime issues like the FLSA does.