Fair Labor Standards Act of 1938

Covered employers must pay at least 7.25 dollars an hour, unchanged since 2009, though many states and cities set higher rates. Nonexempt employees must receive 1.5 times their regular rate for hours over 40 in a workweek, and employers must keep time and pay records. Workers under 18 may not work in hazardous occupations, including operating forklifts. Violations bring back wages, an equal amount in liquidated damages, attorney fees and civil money penalties for repeated or willful violations.

The FLSA governs how warehouse labor is paid during peak season, when overtime and compensable time disputes are most common. Time spent in mandatory security screening, donning required gear or walking between buildings after clocking in can create wage claims if not handled carefully. For example, a 3PL running mandatory 50-hour weeks in December must pay overtime on the regular rate including shift differentials and productivity bonuses, not just the base hourly wage, and cannot let 17-year-old seasonal hires drive forklifts.

• Peak SeasonThe busiest stretch of the year for orders
• Labor Management SystemLMSSoftware that tracks warehouse labor

• National Labor Relations Act (NLRA)1935 · Federal law protecting private-sector union rights
• OSHA Powered Industrial Trucks Standard (29 CFR 1910.178)1971, amended 1998 · Forklift safety and operator training rules
• California AB52019, effective 2020 · California ABC test for independent contractor status

1. US DOL Wage and Hour Division: Fair Labor Standards Act dol.gov
2. US DOL: Child labor hazardous occupation order 7 (power-driven hoisting equipment) dol.gov