Labor laws ensure hourly workers are paid for all hours worked at the proper wage rates. Employers are responsible for properly classifying employees as either exempt or nonexempt and paying them accordingly. Some state laws differ from federal law, and employers are responsible for applying the correct wage and hour laws so that employees are paid correctly for all hours worked.

Minimum Wage Laws

According to the Fair Labor Standards Act, hourly employees who are not otherwise exempt must be paid at least the federal minimum hourly wage. Youth employees under the age of 20 can be paid a lower rate for the first 90 days of employment, but an employer cannot lay off or fire another employee and replace him with a lower-paid youth employee. Tipped employees can be paid an hourly rate below minimum wage as long as their direct wages and tips average at least the current minimum wage. Hourly employees who do piece work can be paid by the piece, as long as their total pay averages the established minimum hourly wage in a pay period.

Overtime Pay

Hourly workers are considered nonexempt employees and are entitled to overtime pay. Employers are required to pay at least one and one-half times the employee's regular rate of pay for every hour worked over 40 hours in a work week. The law doesn't limit the number of hours an employee can be required to work, so long as all hours over 40 in a work week are paid at the overtime rate. States may have additional laws affecting minimum wage and overtime pay. The law with the greater employee benefit applies when federal and state wage laws conflict.

Meal and Work Breaks

Federal law does not require employee meal or work breaks. However, if an employer allows short breaks of five to 20 minutes, that time is considered compensable hours worked. An employer is not required to pay an employee who goes beyond the stated break time. A clearly established meal break of 30 minutes or longer is not considered compensable time.

Notifications and Record Keeping

Employers subject to minimum wage laws are required to post a notice informing employees of their rights under the Fair Labor Standards Act. Employers are required to keep wage and hour records for every employee, including their name, address, social security number, regular rate of pay, hours worked, overtime earnings, deductions and total pay for hours worked. Employers who willfully violate state or federal wage and hour laws can face penalties and fines.

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