Wage and hour law is the umbrella term for the rules governing how much and how workers get paid: minimum wage, overtime, meal and rest breaks, and recordkeeping. Here's what it actually covers, and who enforces it.
What Does "Wage and Hour" Mean?
It refers to the body of law, mainly the federal Fair Labor Standards Act (FLSA) plus state-level equivalents, that governs pay practices: how much employees must be paid per hour, when overtime kicks in, how tips and tip credits work, and what records employers must keep. The US Department of Labor's enforcement arm for this area is literally named the Wage and Hour Division.
The Wage and Hour Division of the US Department of Labor is responsible for enforcing federal minimum wage, overtime, and recordkeeping requirements under the Fair Labor Standards Act.
What Counts as a Wage and Hour Violation?
Common examples include paying below the applicable minimum wage, miscalculating overtime (for example, basing it on the reduced tipped cash wage instead of the full minimum wage), misclassifying an employee as exempt from overtime when their duties don't qualify, and failing to pay for all hours actually worked, including some off-the-clock work.
Who Enforces Wage and Hour Law?
At the federal level, the Department of Labor's Wage and Hour Division. Most states also have their own labor department that enforces state wage and hour law, which can set higher standards than federal law but never lower ones for the same employees. State agencies often handle the bulk of individual worker complaints, since state law frequently sets a higher minimum wage or broader coverage than the federal floor.
What's the Difference Between Wage and Hour Law and Employment Discrimination Law?
Wage and hour law specifically covers how much and how workers are paid, hours worked, overtime, and related recordkeeping. It's a separate legal area from employment discrimination law, which covers unequal treatment based on protected characteristics like race, sex, age, or disability. A single workplace dispute can sometimes involve both, but they're enforced under different statutes and by different processes.
How Do I File a Wage and Hour Complaint?
Document your hours and pay, then contact your state labor department or the US Department of Labor's Wage and Hour Division to file a complaint. Employees are legally protected from retaliation for raising a good-faith wage complaint, and back pay plus penalties are often available to workers who were underpaid.
What Records Must Employers Keep Under Wage and Hour Law?
The FLSA requires covered employers to keep accurate records of hours worked, wages paid, and other conditions of employment for each non-exempt employee, generally for at least three years. These records are exactly what a Wage and Hour Division investigation or a private lawsuit relies on to determine whether an employee was paid correctly, which is why accurate timekeeping matters as much for compliance as the pay rate itself.
Frequently Asked Questions
What is a wage and hour lawsuit?
A legal claim alleging that an employer violated minimum wage, overtime, or related pay law, often brought as a class action when many employees were affected by the same practice.
Does wage and hour law cover salaried employees too?
Yes, though salaried employees who meet both a minimum salary threshold and specific duties tests may be classified as exempt from overtime requirements. See our exempt salary threshold guide for the current rules.
What's the statute of limitations on a wage and hour claim?
It varies by claim type and jurisdiction; federal FLSA claims generally have a two-year limit, extended to three years for willful violations, though state law may set a different limit.
Can I be fired for filing a wage complaint?
No. Federal and state law both prohibit retaliation against an employee for filing a good-faith wage and hour complaint.
See our federal minimum wage and FLSA guide, or check your state's current minimum wage. For official guidance, see the US Department of Labor's Wage and Hour Division.