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Saturday, August 16, 2025

Wage payment: State solutions to the U.S. worker rights crisis - Economic Policy Institute

What does current federal law say about wage payment?

The Fair Labor Standards Act (FLSA)—which establishes wage and hour standards that apply to most workers at private businesses with annual revenue of at least $500,000, as well as hospitals, care centers, schools, and public agencies—requires that covered employers keep employee time and pay records. Beyond this minimal recordkeeping requirement, other important questions about wage payment are left up to states. The FLSA does not specify, for example, how and whether employers make time and pay records available to employees; when or how often employees must be paid; the manner in which pay can be issued (e.g., cash, check, direct deposit, electronic pay card, etc.); whether and under what circumstances employers can take deductions from workers’ pay; and how and by when employees must be paid following separation from employment.

What are the threats to federal wage payment protections?

Current threats to wage payment protections include:

  • Diminished federal Department of Labor (DOL) enforcement capacity: Wage theft is an epidemic across the country, and diminished DOL capacity to enforce federal wage and hour laws will exacerbate this problem. As of May 2025, the number of federal DOL Wage and Hour Division investigators is at an all-time low.
  • Attempts to close the Consumer Financial Protection Bureau (CFPB): The 2006 Electronic Funds Transfer Act included important protections for workers who encounter fraud or...


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