WHICH EMPLOYERS ARE COVERED BY THE FAIR LABOR STANDARDS ACT?
The Fair Labor Standards Act, which features the most important and most far-reaching law guaranteeing a worker’s right to be paid fairly, applies only to employers whose annual sales total $500,000 or more or who are engaged in interstate commerce.
You might think that this would restrict the FLSA to covering only employees in large companies, but, in reality, the law covers nearly all workplaces. This is because the courts have interpreted the term interstate commerce very broadly.
For example, courts have ruled that companies that regularly use the U.S. mail to send or receive letters to and from other states are engaged in interstate commerce. Even the fact that employees use company telephones or computers to place or accept interstate business calls or take orders has subjected an employer to the FLSA.
However, a few employers, including small farms, those that use relatively little outside paid labor, are explicitly exempt from the FLSA.
David Payab, Esq. from The Law Offices of Payab & Associates can be reached @ (818) 918-5522 or by visiting http://payablaw.com/