Final answer:
Compensation in the United States is governed by laws like the FLSA, which sets minimum wage and overtime pay regulations. Nonexempt workers are covered by these laws, while exempt employees receive a salary and are not eligible for overtime pay. The FLSA also regulates child labor and pay policies for federal contractors.
Step-by-step explanation:
In the United States, compensation is governed by various laws that establish boundaries for companies' actions. The rules for equal employment opportunity and the Fair Labor Standards Act (FLSA) are two significant regulations.
The FLSA sets the minimum wage, overtime pay requirements, and employment standards for minors. Nonexempt workers are covered by the FLSA and are entitled to overtime pay for working more than 40 hours a week. Exempt employees, on the other hand, typically receive a salary and are not covered by FLSA overtime pay requirements.
The FLSA also regulates child labor and two additional laws, the Davis-Bacon Act and the Walsh-Healy Public Contracts Act, govern pay policies for federal contractors.