The majority of public and private employees are covered by the Fair Labor Standards Act, a federal law that requires employers to pay employees the federal minimum wage and overtime compensation.
The new 2009 Cumulative Supplement to The Fair Labor Standards Act addresses and examines the latest developments in litigation under the FLSA.
You Need to Understand the Fair Labor Standards Act Part 5 - Protect Yourself. While a contractors responsibility for wage and hour violations can vary depending on the statute(s) involved and the factual circumstances, the FLSA and other statutes help make it clear that a general contractor has some incentive to monitor and try to prevent some of these wage and hour violations. Remember: for liability under the FLSA, you can be liable if you have shown reckless disregard for the law. In general, you may first protect yourself by knowing the law. Second, you can prevent some problems through your contract. Third, a general contractor needs to preserve the distinction between its operations and the operations of its subcontractors. Fourth, it is wise for general contractors to make reasonable efforts to have their subcontractors obey applicable wage and hour laws.