What Is Flsa True Up Payment?


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A FLSA true-up payment is one that is made to settle debts to workers, with regards to outstanding wages, and compensation, when a transition occurs between two companies. There is often money owed to the company as a result of debts and this is the payment that is made. This came about as a result of the Fair Labor Standards Act (FLSA), which was introduced in 1938 and is a federal statute of the United States.

The FLSA also established a number of fair trading practices to protect employees from companies that were employing people and not paying them enough, or employing them in unworkable conditions.

Some of the elements that were introduced by the FLSA were the national minimum wage and the fact that workers were entitled to extra money, time and a half, for any extra hours, or overtime they worked on behalf of the company in question. The act also brought in the prohibition of the employment of minors, after the oppression of them in employment circumstances was deemed to be unlawful. The act is also referred to as the Wages and Hours Bill.

The maximum hours a worker can work, as a result of the Act, is 40 hours per week. After those 40 hours any additional hours are classed as overtime. This can also include travel to and from different work places. For example, if somebody is employed by a company operating from two different locations, and the employee is required to spend some time of each working day at both locations, then the time taken commuting between the two is classed as part of his normal working week.

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