The federal minimum wage provisions are contained in the Fair Labor Standards Act (FLSA). The FLSA contains mandatory standards for federal minimum wage rates at most U.S. companies, along with requirements for child labor, overtime and exempt vs. non-exempt status.
Non-exempt employees paid on an hourly basis must receive at least the federal minimum wage for every hour worked. When non-exempt employees are paid in other ways, such as salary, commission or a piece-rate basis, their pay must generate an hourly rate of at least the federal minimum wage when divided by the total hours worked in the workweek.
As a general rule, non-exempt employees must be compensated for all hours of work that management knows of, or has reason to know of, even if the employer did not request or authorize the time or type of work performed. This means managers should not modify time records to delete entries for work that was performed without management’s request or authorization, even for work performed against company policy or a specific directive. These types of entries should be addressed as disciplinary matters, not as grounds to deny pay. Otherwise, the employer and its individual managers may face legal liability for violating federal minimum wage laws and/or overtime laws.