The act is applicable for employees who work under organizations having two or more employees. The organization must do at least $500,000 per year in businesses or hospitals.

A minimum wage of not less than $7.25 per hour is to be paid to the employees and was effective as on July 24, 2009. The employees can be paid on a piece-rate basis as long as they receive at least the equivalent of the required minimum hourly wage rate and overtime for hours worked in excess of 40 hours in a workweek.

The number of hours in a day or a week that an employer require an employee to work is not limited for employees who are at least 16 years of age. The number of hours worked overtime is also not limited by the Act. Not less than one and one-half times the regular rate of pay is paid for overtime work for all hours worked in excess of 40 in a workweek.

The employers must track the record of employee information including name, address, birth-date, gender, regular hourly pay rate, total overtime earnings for the workweek, date of pay period and so on. These records are verified by the representatives of the Wage and Hour division.

Violations in these issues may result in criminal prosecution and a fine up to $10,000. Civil money penalties of up to $1,100 per violation are resulted for those who violate the minimum wage and overtime requirements willfully or repeatedly. Employers are subjected to civil penalty of up to $11,000 per worker for each violation of the child labor provisions.

However, the first case mentioned here is viable, as this allows a generic administration. But in the second case, there will be issues between state and federal governments, which might result in confused administration – impacting the people.

For example, lets consider the marijuana policy between the federal government and the State government of California. Selling marijuana for medical purposes is legal in Californian state. But Federal government termed it as an illegal activity, even it id for medicinal purposes. The state has medical dispensaries, which sell marijuana legally. They even have permission to promote their product using even TV ads. But the federal agents started creating hassle by raiding these dispensaries and charging them against marijuana possessions.

The federal government is now considering putting a stop to this conflict permanently.

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