The Fair Labor Standards Act (FLSA) is a federal law that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards affecting most private and public employment. It distinguishes between 'exempt' and 'non-exempt' employees. Non-exempt employees are entitled to overtime pay (1.5 times their regular rate) for hours worked over 40 in a workweek. Exempt employees, typically those in executive, administrative, or professional roles meeting specific salary and duty tests, are not entitled to overtime pay. The FLSA also sets a federal minimum wage, which can be superseded by higher state or local minimum wages.

The Equal Pay Act of 1963 (EPA) is a federal law that prohibits wage discrimination on account of sex in the payment of wages for equal work, or work of substantially equal value, performed by employees in the same establishment. 'Equal work' is determined by job content, not job titles. Factors such as skill, effort, responsibility, and working conditions are considered. Differences in pay are permissible if based on a seniority system, a merit system, a system which measures earnings by quantity or quality of production, or any other factor other than sex.

Title VII of the Civil Rights Act of 1964 is a comprehensive federal law that prohibits employment discrimination based on race, color, religion, sex, and national origin. This includes discrimination in all aspects of employment, such as hiring, firing, promotion, compensation, and benefits. While the EPA specifically addresses sex-based pay discrimination for equal work, Title VII provides broader protection against any form of discrimination that affects compensation, including pay disparities that may arise from systemic bias or discriminatory practices related to any of the protected characteristics.

The Age Discrimination in Employment Act of 1967 (ADEA) protects individuals who are 40 years of age or older from employment discrimination. This protection extends to all aspects of employment, including compensation. Employers cannot reduce wages, deny promotions, or make other compensation-related decisions based on an employee's age, unless age is a bona fide occupational qualification (BFOQ) reasonably necessary for the normal operation of the particular business, which is a very narrow exception.

The Americans with Disabilities Act of 1990 (ADA) prohibits discrimination against qualified individuals with disabilities in all aspects of employment, including compensation and benefits. Employers must provide reasonable accommodations to enable individuals with disabilities to perform the essential functions of their jobs, unless doing so would cause undue hardship. Compensation decisions must be based on job-related factors and cannot be influenced by an employee's disability. This also means that an employer cannot reduce an employee's pay simply because they require accommodations.

States have the authority to set their own minimum wage rates, which must be at least equal to the federal minimum wage. Many states have enacted minimum wages significantly higher than the federal rate. Similarly, some states have their own overtime provisions that may differ from the FLSA, such as requiring overtime pay for hours worked over 8 in a day, or for working on a seventh consecutive day, in addition to or instead of the federal weekly standard. Employers must comply with the law that provides the greater benefit to the employee.

In recent years, a growing number of states have passed legislation aimed at promoting pay equity and transparency. These laws often include provisions such as: prohibiting employers from asking job applicants about their salary history; requiring employers to disclose salary ranges in job postings; and strengthening protections against pay discrimination by broadening the definition of 'comparable work' or making it easier for employees to challenge pay disparities. Staying updated on these evolving state and local regulations is vital for compliance.

The FLSA, for example, requires employers to keep accurate records for each non-exempt employee. These records must include information such as the employee's name, address, social security number, hours worked each day and week, basis of pay (e.g., hourly rate, salary), total earnings, and any deductions. Proper recordkeeping is not only a legal requirement but also serves as evidence of compliance in case of audits or legal challenges. Failure to maintain adequate records can lead to significant penalties.