Your Complete Guide to the FLSA

The Fair Labor Standards Act (FLSA) is a federal law that came to be in 1938 to protect workers from unfair work practices and is specifically designed for organizations that conduct interstate business. The act requires employers to pay a federal minimum wage to employees, pay overtime for more than 40 hours worked per week and follow child labor regulations.

Who is Subject to the FLSA?

Any Business that engages in interstate commerce and has sales of $500,000 or more per year is subject to the FLSA. The business and its employees must be located in the United States. Businesses involved with instruments of interstate commerce are also covered by the FLSA. These instruments include railroads, highways, radio or tv stations, and even waterways. In some cases, telephone calls and internet usage have been considered means of conducting interstate business. In addition, organizations like hospitals, schools and government agencies are required by law to comply with the FLSA. Essentially, the FLSA covers most businesses operating in the United States.

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