Which Act establishes minimum wage and overtime pay regulations?

The Fair Labor Standards Act (FLSA) is the legislation that establishes minimum wage and overtime pay regulations in the United States. Enacted in 1938, the FLSA aims to protect the rights of workers by ensuring they receive fair compensation for their labor. This act sets forth the federal minimum wage, over-time pay requirements for certain categories of employees, and regulates child labor, providing standards that employers must adhere to.

Understanding the importance of the FLSA is crucial, as it not only provides a framework for employee compensation but also plays a significant role in shaping labor market policies and practices. The FLSA ensures a level of economic security for workers, helping to reduce poverty and improve living standards for millions of employees across various sectors.