The Fair Labor Standards Act (FLSA), passed in 1938 and amended many times since then, is a major labormanagement law regulating wages and hours, child labor, equal pay, and overtime pay. The act entitles covered employees to a specified MINIMUM WAGE and a time-and-ahalf rate for work exceeding 40 hours per week. One of the critical and complicated aspects of FLSA is the question of who is covered by the act. Generally, hourly employees for business engaged in interstate commerce or producing goods and services for interstate commerce are covered by the act. Federal employees were added to coverage in 1974. Most executive, administrative, and professional personnel are exempted from coverage. Whether or not an employee is covered is important in determining which workers can be expected to work beyond 40 hours per week without compensation and which employees must be compensated. FLSA also contains provisions regarding child labor. “Oppressive” child labor is considered to include most EMPLOYMENT of children below the age of 14. Employment in certain occupations is allowed for children aged 14–15, and the act contains restrictions for employment of children aged 16–17 in certain hazardous occupations. Changes in minimum-wage laws are amendments to the original FLSA. Interpreting the FLSA is a complex process with numerous legal precedents. Whole books have been written and are continually updated regarding labor-law requirements under the act. International businesses opening operations in the United States need to become familiar with labor practices acceptable and unacceptable under FLSA.