As a manager, you have a lot of responsibilities when it comes to your employees. Pay is one of the most important. Pay and time off are 2 things you don’t want to mess with if you want to keep your employees. When it comes to pay, the FLSA governs a lot about what you’ll do. So, what is the FLSA?
One of the foundational federal laws that governs pay is the Fair Labor Standards Act (FLSA), which establishes minimum wage and overtime. It also sets rules for recordkeeping and youth employment. The FLSA covers individuals, so it’s not about whether the FLSA applies to your company – it’s about whether the FLSA applies to any of your employees.
Who’s covered by the FLSA? Almost everyone. Employees are covered if they work for a business with at least 2 employees that (1) has an annual “volume of sales or business done of at least $500,000” or (2) is a hospital, nursing home, school or preschool, or government agency. If this doesn’t apply, employees are still covered “if their work regularly involves them in commerce between States.” So, if you interact with people in other states, whether you’re calling them, mailing items to them, or even working in a building where items will be shipped to them, then you’re covered. Domestic service workers, such as housekeepers or nannies, also tend to be covered.
Now that you know what the FLSA is and who’s covered by it, how does this relate to your company in particular? I wouldn’t spend any time trying to figure out whether the FLSA applies to your employees. Chances are, it does, so I would move on. It would be hard to prove otherwise in court and isn’t worth the legal cost. Plus, people tend to assume that things like minimum wage and overtime are a given, so it would easily seem unfair and downright shady not to provide them.
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