Scope of Discussion. The primary source of federal wage and hour regulation – the Fair Labor Standard Act (FLSA) – establishes a minimum wage and overtime standard for covered employees. This publication includes an overview of the FLSA and its requirements; exemptions from minimum wage and overtime obligations; calculation of regular rate of pay/overtime premium; and what is (and is not) included in “hours of work.” A brief summary of other federal compensation statutes related to federal contractors is also included. The last section offers strategies to minimize the risk of wage and hour claims, including guidance on how to conduct a wage and hour audit.

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