Every employer should be familiar with wage and hour laws set by the US federal government, as well as state and local laws. Wage and hour laws protect workers' rights. The law states the minimum amount a worker can earn per hour and the maximum hour that a worker can be expected to work in a day. The law also provides rules for overtime pay, break time regulations, tips, pay periods, direct deposit, paycheck deductions and weekend pay.
At the federal level, the majority of wage and hour laws are set by the Fair Labor Standards Act (FLSA). The Internal Revenue Service (IRS) sets other parameters such as which employees can work for less than the federal minimum wage. Here are a few facts you should know about wage and hour laws: