The Fair Labor Standards Act (FLSA) is a U.S. law established in 1938 that sets standards for minimum wage, overtime pay, and child labor. It aims to protect workers by ensuring they receive fair compensation for their work and limiting the hours that minors can work. Under the FLSA, employees are classified as either exempt or non-exempt, which determines their eligibility for overtime pay. Non-exempt employees must be paid at least the federal minimum wage and receive overtime pay for hours worked over 40 in a week, while exempt employees are not entitled to these benefits.