29 U.S.C. § 206 – Fair Labor Standards Act (FLSA): Minimum Wage Requirement
Code Details
From Title 29-LABOR
CHAPTER 8-FAIR LABOR STANDARDS
Exact Statute Text
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(a) Employees engaged in commerce; home workers in Puerto Rico and Virgin Islands; employees in American Samoa; seamen on American vessels; agricultural employees
Every employer shall pay to each of his employees who in any workweek is engaged in commerce or in the production of goods for commerce, or is employed in an enterprise engaged in commerce or in the production of goods for commerce, wages at the following rates:
(1) except as otherwise provided in this section, not less than-
(A) $5.85 an hour, beginning on the 60th day after May 25, 2007;
(B) $6.55 an hour, beginning 12 months after that 60th day; and
(C) $7.25 an hour, beginning 24 months after that 60th day;
(2) if such employee is a home worker in Puerto Rico or the Virgin Islands, not less than the minimum piece rate prescribed by regulation or order; or, if no such minimum piece rate is in effect, any piece rate adopted by such employer which shall yield, to the proportion or class of employees prescribed by regulation or order, not less than the applicable minimum hourly wage rate. Such minimum piece rates or employer piece rates shall be commensurate with, and shall be paid in lieu of, the minimum hourly wage rate applicable under the provisions of this section. The Administrator, or his authorized representative, shall have power to make such regulations or orders as are necessary or appropriate to carry out any of the provisions of this paragraph, including the power without limiting the generality of the foregoing, to define any operation or occupation which is performed by such home work employees in Puerto Rico or the Virgin Islands; to establish minimum piece rates for any operation or occupation so defined; to prescribe the method and procedure for ascertaining and promulgating minimum piece rates; to prescribe standards for employer piece rates, including the proportion or class of employees who shall receive not less than the minimum hourly wage rate; to define the term “home worker”; and to prescribe the conditions under which employers, agents, contractors, and subcontractors shall cause goods to be produced by home workers;
(3) if such employee is employed as a seaman on an American vessel, not less than the rate which will provide to the employee, for the period covered by the wage payment, wages equal to compensation at the hourly rate prescribed by paragraph (1) of this subsection for all hours during such period when he was actually on duty (including periods aboard ship when the employee was on watch or was, at the direction of a superior officer, performing work or standing by, but not including off-duty periods which are provided pursuant to the employment agreement); or
(4) if such employee is employed in agriculture, not less than the minimum wage rate in effect under paragraph (1) after December 31, 1977.
(b) Additional applicability to employees pursuant to subsequent amendatory provisions
Every employer shall pay to each of his employees (other than an employee to whom subsection (a)(5) 1 applies) who in any workweek is engaged in commerce or in the production of goods for commerce, or is employed in an enterprise engaged in commerce or in the production of goods for commerce, and who in such workweek is brought within the purview of this section by the amendments made to this chapter by the Fair Labor Standards Amendments of 1966, title IX of the Education Amendments of 1972 [20 U.S.C. 1681 et seq.], or the Fair Labor Standards Amendments of 1974, wages at the following rate: Effective after December 31, 1977, not less than the minimum wage rate in effect under subsection (a)(1).
(c) Repealed. Pub. L. 104–188, [title II], §2104(c), Aug. 20, 1996, 110 Stat. 1929
(d) Prohibition of sex discrimination
(1) No employer having employees subject to any provisions of this section shall discriminate, within any establishment in which such employees are employed, between employees on the basis of sex by paying wages to employees in such establishment at a rate less than the rate at which he pays wages to employees of the opposite sex in such establishment for equal work on jobs the performance of which requires equal skill, effort, and responsibility, and which are performed under similar working conditions, except where such payment is made pursuant to (i) a seniority system; (ii) a merit system; (iii) a system which measures earnings by quantity or quality of production; or (iv) a differential based on any other factor other than sex: Provided, That an employer who is paying a wage rate differential in violation of this subsection shall not, in order to comply with the provisions of this subsection, reduce the wage rate of any employee.
(2) No labor organization, or its agents, representing employees of an employer having employees subject to any provisions of this section shall cause or attempt to cause such an employer to discriminate against an employee in violation of paragraph (1) of this subsection.
(3) For purposes of administration and enforcement, any amounts owing to any employee which have been withheld in violation of this subsection shall be deemed to be unpaid minimum wages or unpaid overtime compensation under this chapter.
(4) As used in this subsection, the term “labor organization” means any organization of any kind, or any agency or employee representation committee or plan, in which employees participate and which exists for the purpose, in whole or in part, of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work.
(e) Employees of employers providing contract services to United States
(1) Notwithstanding the provisions of section 213 of this title (except subsections (a)(1) and (f) thereof), every employer providing any contract services (other than linen supply services) under a contract with the United States or any subcontract thereunder shall pay to each of his employees whose rate of pay is not governed by chapter 67 of title 41 or to whom subsection (a)(1) of this section is not applicable, wages at rates not less than the rates provided for in subsection (b) of this section.
(2) Notwithstanding the provisions of section 213 of this title (except subsections (a)(1) and (f) thereof) and the provisions of chapter 67 of title 41, every employer in an establishment providing linen supply services to the United States under a contract with the United States or any subcontract thereunder shall pay to each of his employees in such establishment wages at rates not less than those prescribed in subsection (b), except that if more than 50 per centum of the gross annual dollar volume of sales made or business done by such establishment is derived from providing such linen supply services under any such contracts or subcontracts, such employer shall pay to each of his employees in such establishment wages at rates not less than those prescribed in subsection (a)(1) of this section.
(f) Employees in domestic service
Any employee-
(1) who in any workweek is employed in domestic service in a household shall be paid wages at a rate not less than the wage rate in effect under subsection (b) unless such employee’s compensation for such service would not because of section 209(a)(6) of the Social Security Act [42 U.S.C. 409(a)(6)] constitute wages for the purposes of title II of such Act [42 U.S.C. 401 et seq.], or
(2) who in any workweek-
(A) is employed in domestic service in one or more households, and
(B) is so employed for more than 8 hours in the aggregate,
shall be paid wages for such employment in such workweek at a rate not less than the wage rate in effect under subsection (b).
(g) Newly hired employees who are less than 20 years old
(1) In lieu of the rate prescribed by subsection (a)(1), any employer may pay any employee of such employer, during the first 90 consecutive calendar days after such employee is initially employed by such employer, a wage which is not less than $4.25 an hour.
(2) In lieu of the rate prescribed by subsection (a)(1), the Governor of Puerto Rico, subject to the approval of the Financial Oversight and Management Board established pursuant to section 2121 of title 48, may designate a time period not to exceed four years during which employers in Puerto Rico may pay employees who are initially employed after June 30, 2016, a wage which is not less than the wage described in paragraph (1). Notwithstanding the time period designated, such wage shall not continue in effect after such Board terminates in accordance with section 2149 of title 48.
(3) No employer may take any action to displace employees (including partial displacements such as reduction in hours, wages, or employment benefits) for purposes of hiring individuals at the wage authorized in paragraph (1) or (2).
(4) Any employer who violates this subsection shall be considered to have violated section 215(a)(3) of this title.
(5) This subsection shall only apply to an employee who has not attained the age of 20 years, except in the case of the wage applicable in Puerto Rico, 25 years, until such time as the Board described in paragraph (2) terminates in accordance with section 2149 of title 48.
(June 25, 1938, ch. 676, §6, 52 Stat. 1062 ; June 26, 1940, ch. 432, §3(e), (f), 54 Stat. 616 ; Oct. 26, 1949, ch. 736, §6, 63 Stat. 912 ; Aug. 12, 1955, ch. 867, §3, 69 Stat. 711 ; Aug. 8, 1956, ch. 1035, §2, 70 Stat. 1118 ; Pub. L. 87–30, §5, May 5, 1961, 75 Stat. 67 ; Pub. L. 88–38, §3, June 10, 1963, 77 Stat. 56 ; Pub. L. 89–601, title III, §§301–305, Sept. 23, 1966, 80 Stat. 838 , 839, 841; Pub. L. 93–259, §§2–4, 5(b), 7(b)(1), Apr. 8, 1974, 88 Stat. 55 , 56, 62; Pub. L. 95–151, §2(a)–(d)(2), Nov. 1, 1977, 91 Stat. 1245 , 1246; Pub. L. 101–157, §§2, 4(b), Nov. 17, 1989, 103 Stat. 938 , 940; Pub. L. 101–239, title X, §10208(d)(2)(B)(i), Dec. 19, 1989, 103 Stat. 2481 ; Pub. L. 104–188, [title II], §§2104(b), (c), 2105(c), Aug. 20, 1996, 110 Stat. 1928 , 1929; Pub. L. 110–28, title VIII, §§8102(a), 8103(c)(1)(B), May 25, 2007, 121 Stat. 188 , 189; Pub. L. 114–187, title IV, §403, June 30, 2016, 130 Stat. 586.)
29 U.S.C. § 206 Summary
This federal law, Section 206 of the Fair Labor Standards Act (FLSA), establishes the minimum wage requirements for most employees in the United States. Its core provision mandates that covered employers pay their employees a wage not less than the federally set hourly rate, which currently stands at $7.25 per hour (effective since July 24, 2009).
The statute outlines which employees are covered, generally those “engaged in commerce or in the production of goods for commerce” or “employed in an enterprise engaged in commerce or in the production of goods for commerce.” This broad language means the law applies to most private and public employers.
In addition to the general minimum wage, the statute includes specific provisions for certain employee groups, such as:
- Home workers in Puerto Rico and the Virgin Islands, who may be paid minimum piece rates.
- Seamen on American vessels, paid for actual duty hours.
- Agricultural employees, subject to the general minimum wage rate.
- Employees providing contract services to the U.S. government.
- Domestic service employees (e.g., housekeepers, nannies), with specific rules depending on hours worked and Social Security Act considerations.
A crucial part of this section, subsection (d), is known as the Equal Pay Act. It prohibits employers from discriminating on the basis of sex by paying employees of one sex less than employees of the opposite sex for equal work requiring equal skill, effort, and responsibility, and performed under similar working conditions. There are exceptions for pay differences based on seniority, merit, quantity/quality of production, or other factors unrelated to sex. Importantly, employers cannot lower wages to achieve equal pay.
The statute also includes a “youth minimum wage” provision, allowing employers to pay employees under 20 years old a lower wage of $4.25 per hour for their first 90 consecutive calendar days of employment. This is intended to encourage youth employment but prohibits employers from displacing existing workers to hire at this lower rate.
Overall, Section 206 sets the baseline for fair compensation, ensuring that most workers receive a minimum hourly wage and addressing wage discrimination based on sex.
Purpose of 29 U.S.C. § 206
The legislative intent behind this particular section of the Fair Labor Standards Act (FLSA) is to establish a foundational wage floor for American workers. Enacted during the Great Depression, the FLSA sought to combat “labor conditions detrimental to the maintenance of the minimum standard of living necessary for health, efficiency, and general well-being of workers.” Section 206 directly addresses this by requiring employers to pay a minimum hourly wage, thereby aiming to alleviate poverty, stabilize the economy, and prevent employers from gaining an unfair competitive advantage by underpaying their workforce.
Beyond setting a basic wage, the statute’s purpose extends to promoting gender equality in the workplace through its Equal Pay Act provisions. By prohibiting wage discrimination based on sex for equal work, it seeks to ensure fair compensation and eliminate historical disparities in pay between men and women. The provisions for specific categories of workers, like seamen or domestic workers, illustrate the intent to provide comprehensive wage protections across various industries and employment types, recognizing the unique circumstances that might apply to different labor sectors. Ultimately, this section serves as a cornerstone of worker protection, ensuring that covered employees receive a baseline income and are compensated equitably for their contributions.
Real-World Example of 29 U.S.C. § 206
Consider Maria, a 35-year-old cashier working at a retail clothing store in Houston, Texas. The store, “Trendy Threads,” operates in multiple states and regularly receives shipments from other states, meaning it is an “enterprise engaged in commerce” under the FLSA. Maria typically works 40 hours per week.
According to 29 U.S.C. § 206, Trendy Threads must pay Maria at least the federal minimum wage of $7.25 per hour. If Trendy Threads were to pay Maria only $6.00 an hour, they would be in direct violation of Section 206(a)(1). Maria could then file a complaint with the U.S. Department of Labor (DOL) or pursue a private lawsuit to recover the difference between what she was paid and the lawful minimum wage, plus potential liquidated damages.
Now, imagine Trendy Threads also employs a male cashier, John, who performs the exact same duties as Maria, has similar experience, and works the same hours. If Trendy Threads pays John $8.00 an hour while Maria still earns only $6.00 an hour, this would be a violation of 29 U.S.C. § 206(d), the Equal Pay Act. Assuming there’s no legitimate, non-sex-based reason for the wage difference (like a seniority or merit system), Maria would have a claim for wage discrimination. In such a scenario, the employer would be required to raise Maria’s pay to match John’s, and could not reduce John’s pay to resolve the disparity.
Related Statutes
Understanding the full scope of the Fair Labor Standards Act (FLSA) often requires looking at several interconnected provisions alongside 29 U.S.C. § 206:
- 29 U.S.C. § 203 (Definitions): This section is crucial for interpreting the FLSA, as it defines key terms like “employer,” “employee,” “wage,” “commerce,” and “enterprise.” These definitions determine who is covered by the minimum wage requirement in Section 206. For example, understanding what constitutes an “enterprise engaged in commerce” is vital for determining the applicability of the FLSA.
- 29 U.S.C. § 207 (Maximum Hours): Often coupled with minimum wage, this section establishes the requirement for most non-exempt employees to be paid overtime compensation (at least 1.5 times their regular rate of pay) for hours worked over 40 in a workweek. It complements Section 206 by ensuring fair compensation for extended work hours.
- 29 U.S.C. § 213 (Exemptions): This is a critical section that outlines various exemptions from the minimum wage and/or overtime provisions of the FLSA. Common exemptions include those for executive, administrative, professional, and outside sales employees (the “white collar” exemptions), as well as exemptions for certain agricultural workers, highly compensated employees, and others. An employee might be covered by Section 206 but exempt under Section 213.
- 29 U.S.C. § 215 (Prohibited Acts): This section lists actions that are unlawful under the FLSA, including violating the minimum wage (or overtime) provisions, retaliating against employees who file complaints, or transporting “hot goods” (goods produced in violation of the FLSA).
- 29 U.S.C. § 216 (Penalties and Remedies): This section details the penalties for violating the FLSA and the remedies available to employees who have been underpaid. It allows employees to recover unpaid minimum wages, unpaid overtime compensation, and often an equal amount in liquidated damages, along with attorney’s fees and court costs.
Case Law Interpreting 29 U.S.C. § 206
Case law provides critical interpretation and application of 29 U.S.C. § 206, clarifying its scope and requirements.
One foundational case concerning the constitutionality and reach of the FLSA, including its minimum wage provisions, is United States v. Darby Lumber Co., 312 U.S. 100 (1941). In *Darby*, the Supreme Court upheld the FLSA’s constitutionality, affirming Congress’s power under the Commerce Clause to regulate labor standards, including minimum wages, for goods intended for interstate commerce. This ruling established the broad applicability of FLSA’s minimum wage requirements across many industries.
Regarding the Equal Pay Act component, 29 U.S.C. § 206(d), a landmark decision is Corning Glass Works v. Brennan, 417 U.S. 188 (1974)+equal+pay+act&hl=en&as_sdt=40000006). This case clarified the “equal work” standard under the Equal Pay Act. The Supreme Court ruled that a differential in pay between male and female employees doing substantially equal work was unlawful, even if the jobs were performed on different shifts, because the “working conditions” were substantially similar. The Court emphasized that a pay differential based on historical market forces for different sexes, rather than legitimate job-related factors, violates the Act. This case is crucial for understanding the burden on employers to justify any wage disparities.
These cases illustrate how courts have interpreted the minimum wage and equal pay provisions, guiding employers and employees on their rights and obligations under 29 U.S.C. § 206.
Why 29 U.S.C. § 206 Matters in Personal Injury Litigation
While 29 U.S.C. § 206 primarily governs employment law, its provisions can indirectly but significantly impact personal injury litigation, particularly when calculating damages for lost wages and earning capacity. For individuals in Texas who suffer an injury due to another party’s negligence, the ability to accurately demonstrate financial losses is crucial for securing adequate compensation.
Here’s how this federal minimum wage law becomes relevant:
1. Accurate Calculation of Lost Wages: When an injury prevents a plaintiff from working, their personal injury claim will seek compensation for lost past wages and projected future lost earning capacity. If a plaintiff was employed at a wage below the federal minimum wage in violation of FLSA, their personal injury attorney can argue that their damages should be calculated based on the *lawful* minimum wage, not the unlawfully low wage they were actually receiving. This ensures the plaintiff isn’t penalized twice—once by the employer’s FLSA violation and again by a reduced personal injury award.
2. Establishing a Baseline for Earning Capacity: Even if a plaintiff was unemployed or underemployed at the time of injury, Section 206 provides a legal minimum for what they could have earned. This federal minimum wage can serve as a baseline for calculating potential lost earning capacity, especially for individuals entering the workforce, those with limited work history, or those seeking entry-level positions.
3. Worker Classification Issues: Disputes over minimum wage often involve whether a worker is properly classified as an employee or an independent contractor. In personal injury cases, proper classification can be critical. If an injured worker was misclassified as an independent contractor to avoid FLSA obligations, this misclassification could impact their access to workers’ compensation benefits (if applicable), their ability to sue the “employer” for negligence, or the calculation of their lost wages based on FLSA-compliant earnings.
4. Equal Pay Implications in Damages: If a plaintiff’s pre-injury wages were subject to sex-based discrimination in violation of Section 206(d), their personal injury claim could argue for lost wages to be calculated based on the non-discriminatory, lawful wage they *should have been* earning. This ensures that the injury victim is made whole based on equitable pay standards.
For personal injury attorneys in Texas, understanding FLSA Section 206 means ensuring that wage-related damages are calculated not just on what a client *was* paid, but on what they *should have been* paid under federal law. This can significantly increase the value of a claim and provide a stronger foundation for negotiating fair settlements or pursuing litigation.