National Occupational Competency Testing Institute (NOCTI) Business Practice Exam

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Which act is responsible for regulating the federal minimum wage for interstate commerce?

  1. Fair Labor Standards Act

  2. National Labor Relations Act

  3. Occupational Safety and Health Act

  4. Equal Pay Act

The correct answer is: Fair Labor Standards Act

The Fair Labor Standards Act (FLSA) is the key piece of legislation that establishes and regulates the federal minimum wage for industries engaged in interstate commerce. Enacted in 1938, the FLSA aims to protect workers by setting standards for minimum wage, overtime pay, recordkeeping, and youth employment. The act specifically covers employees in various sectors involved in interstate trade and commerce, ensuring they receive fair compensation. In contrast, the National Labor Relations Act focuses more on labor relations and the rights of employees and employers to engage in collective bargaining, while the Occupational Safety and Health Act addresses workplace safety and health standards. The Equal Pay Act, on the other hand, aims to eliminate wage disparity based on gender but does not regulate the minimum wage itself. Therefore, the Fair Labor Standards Act is the correct response given its direct role in setting and regulating the federal minimum wage.