OVERVIEW

Merit pay, also known as pay-for-performance, is defined as an increase in pay based on a set of criteria set by the employer. This usually involves the employer conducting a review and meeting with the employee to discuss the employee's work performance during a certain time period. The provision of merit pay is a matter between an employer and an employee (or the employee's representative). The Fair Labor Standards Act (FLSA) does not require or address the issue of merit pay. The FLSA is administered and enforced by the Wage and Hour Division of the Employment Standards Administration.

COMPLIANCE ASSISTANCE MATERIALS

BASIC INFORMATION

• Handy Reference Guide to the Fair Labor Standards Act - Answers many questions about the FLSA, including what the Act does and does not require.
• Questions and Answers About the FLSA

E-TOOLS

• elaws FLSA Advisor - Addresses key wage and hour topics, including what the FLSA does and does not require.

APPLICABLE LAWS AND REGULATIONS

• The Fair Labor Standards Act (FLSA) - Establishes minimum wages, overtime pay, recordkeeping and child labor standards for private sector and government workers.

DOL CONTACTS*

• Employment Standards Administration (ESA)
  Wage and Hour Division
  200 Constitution Avenue, NW
  Room S-3502
  Washington, DC 20210
  Contact WHD
  Tel: 1-866-4USWAGE (1-866-487-9243)
  TTY: 1-877-889-5627
  Local Offices

• For questions on other DOL laws,
  please call DOL's Toll-Free Help Line at 1-866-4-USA-DOL. Live assistance is available in English and Spanish, Monday through Friday from 8:00 a.m. to 8:00 p.m. Eastern Time. Additional service is available in more than 140 languages through a translation service.
  Tel: 1-866-4-USA-DOL
  TTY: 1-877-889-5627

*Pursuant to the U.S. Department of Labor's Confidentiality Protocol for Compliance Assistance Inquiries, information provided by a telephone caller will be kept confidential within the bounds of the law. Compliance assistance inquiries will not trigger an inspection, audit, investigation, etc.