Which U.S. law, enacted in 1938, established the federal minimum wage and overtime rules affecting many small businesses?

The Fair Labor Standards Act established the U.S. federal minimum wage and overtime rules affecting many small businesses.

Signed by President Franklin D. Roosevelt on June 25, 1938, the law also restricted child labor and required covered employers to pay overtime for hours worked beyond 40 in a workweek. It was a major part of New Deal labor legislation.

The act did not impose identical requirements on every worker or business. Coverage has changed through later amendments, and exemptions can apply based on an employee’s duties, pay, industry, or the employer’s annual business volume. State and local laws may also set higher minimum wages or stronger protections.

A common mix-up is confusing the FLSA with the National Labor Relations Act, which governs collective bargaining and union activity. The FLSA instead focuses primarily on wages, hours, and child-labor standards.