What You Need to Know About Who Is Protected by the Fair Labor Standards Act
The Fair Labor Standards Act (FLSA) seeks to protect employees from unfavorable work conditions and guarantee them certain rights. Here’s everything you need to know about who is protected by the Fair Labor Standards Act.
One of the more complicated laws of the workplace, the Fair Labor Standards Act has been amended many times and includes several exceptions and exemptions. Though it may be difficult to navigate, the FLSA applies to almost all workplaces. Understanding who is protected by the Fair Labor Standards Act is essential as either an employer or employee.
What is the Fair Labor Standards Act?
The FLSA was passed in 1938 after the Great Depression and is the most far-reaching law guaranteeing a worker’s right to fair wages. The FLSA specifies when workers are “on the clock” and what constitutes paid hours.
There are also elaborate rules concerning whether employees are exempt or nonexempt from the FLSA overtime regulations. The law requires overtime to be paid at one-and-a-half times the regular hourly rate (“time-and-a-half”) for all hours worked in excess of 40 hours during a seven-day workweek. The Fair Labor Standards Act:
- Defines the 40-hour workweek
- Establishes the federal minimum wage
- Sets requirements for overtime
- Places restrictions on child labor
Related: Workers’ Compensation Claims for Emotional Distress
The minimum wage for covered workers is not less than $7.25 per hour effective July 24, 2009. With only some exceptions, overtime must be paid for work over forty hours a week. Child labor regulations prohibit persons younger than eighteen years old from working in certain jobs and additionally sets rules concerning the hours and times employees under sixteen years of age may work.
More than 143 million American workers are protected by the FLSA. There are two ways in which an employee can be covered by the law: enterprise coverage and individual coverage.
Enterprise Coverage Under the FLSA
Employees who work for certain businesses or organizations are covered by the FLSA. These enterprises, which must have at least two employees, are:
- Those that have an annual dollar volume of sales or business done of at least $500,000
- Hospitals, businesses providing medical or nursing care for residents, schools and preschools, and government agencies
Individual Coverage Under the FLSA
Even when there is no enterprise coverage, employees are protected by the FLSA if their work regularly involves them in interstate commerce.
Examples of employees who are involved in interstate commerce include those who: produce goods that will be sent out of state, regularly make telephone calls to persons located in other states, handle records of interstate transactions, travel to other states on their jobs, and do janitorial work in buildings where goods are produced for shipment outside the state.
Related: How to Sue an Employer for Unpaid Overtime
Coverage Rules for Employees
Some employees are exempt from Fair Labor Standards Act requirements, such as pay for overtime and minimum wages, even though their employers are covered. For example, many airline employees are exempt from the FLSA’s overtime provisions.
Exemption and partial exemption from the FLSA have both upsides and downsides. For employees who are exempt, the downside is that they are generally not entitled to wage extras, such as overtime and compensatory time. The upside is that, in most cases, exempt employees are paid a salary that is handsome enough to compensate them for the extra duties and responsibilities they have taken on as part of their jobs.
Exemptions to the Fair Labor Standards Act
A few employers are explicitly exempt from the Fair Labor Standards Act. Only staff employees (as opposed to freelancers or independent contractors) are covered by the FLSA. Among these employees, several categories of workers are considered “exempt” as well. The major groups include:
- Executive, administrative, and professional workers
- Outside salespeople (paid primarily through commissions)
- Computer workers (systems analysts, programmers, software engineers, designers/developers, or others)
Other categories of employees that will be exempt from FLSA minimum wage and overtime regulations include:
- Employees at businesses with fewer than two employees
- Employees at businesses that have annual revenue of less than $500,000 and who do not engage in interstate commerce
- Railroad workers (covered instead by the Railway Labor Act)
- Truck drivers (covered instead by the Motor Carriers Act)
- Independent contractors and freelance workers
- Some agriculture workers
- Babysitters
- Newspaper delivery workers
- Apprentices
- Movie theater employees
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If you or a loved one would like to learn more about the Protected By Fair Labor Standards Act, get your free consultation with one of our Employment Attorneys today