What is the FLSA?


The Fair Labor Standards Act is the federal labor statute that applies to most companies in the United States. It regulates minimum wage, overtime, child labor, and record keeping.

Whether or not you have to abide by the rules set forth in the FLSA depends on the size of your company and what type of work your employees do.  Although the statue was written in a way that could’ve been interpreted narrowly, courts have expanded the statute’s reach to include most employers and employees in the U.S.

If your business has annual sales and service revenue of at least $500,000 and you employ at least 2 employees then your business must abide by the FLSA. There are many exemptions from portions of the FLSA that might affect some or all of your employees.  For example, if you employ interstate truck drivers they might be exempt from the overtime provisions of the FLSA but all of the other sections (minimum wage, record keeping, and child labor) would still apply.

Also, hospitals, schools, and public agencies are automatically covered by the FLSA regardless of their amount of annual revenue.

If your business has annual revenue of less than $500,000 but individual employees are “engaged in interstate commerce” by doing things like ordering supplies from another state, swiping a credit card that is processed in another state, cleaning a bank that engages in interstate transactions, manufacturing an item to be sold in another state, etc. then the laws of the FLSA will apply to that individual employee even if they don’t apply to everyone at the company.

Remember that even if your business or certain employees at your business are not covered by the FLSA there might be state specific labor laws that apply to your business.  If you are covered by both the FLSA and state labor laws you must comply with the law that most protects (benefits) the employee in every instance.  This Handy Reference Guide summarizes the FLSA and all of its provisions in easy to understand language.

We hope you found this week’s tip helpful and informative. Please pass it along to anyone who doesn’t know what the FLSA is or if it applies to their company. Follow us on facebook to get the next Tip of the Week on your newsfeed!

Link: https://laborbrain.com/tip-of-the-week-what-is-the-flsa/

–         By Kalen Fraser

The Labor Brain Inc. is not a law firm and its employees do not practice law or provide legal services.  The information provided on our website,  in email correspondence with representatives of The Labor Brain, and at outreach events is for informational and educational purposes only.  The information provided is not a substitute for the advice of an attorney.