WHICH EMPLOYERS ARE COVERED BY FEDERAL OVERTIME PAY REQUIREMENTS?
Most employers are covered by the FLSA, if they have two or more employees engaged in interstate commerce, producing goods for interstate commerce, or handling, selling or otherwise working on goods or materials that have been moved in or produced for interstate commerce. The term “interstate commerce” is very broadly defined. For example, cleaning personnel using cleaning products that were produced in another state is generally sufficient to make the employer subject to the FLSA. Almost all employers will be deemed engaged in interstate commerce. In addition, to be covered, the employer must have annual gross sales or business of not less than $500,000. Even if the employer is not itself a covered business, its employees – or even just one employee – may still be covered if they are individually regularly engaged in interstate commerce or in the production of goods for interstate commerce or in any closely-related process or occupation directly essential to such production.
Most employers are covered by the FLSA, if they have two or more employees engaged in interstate commerce, producing goods for interstate commerce, or handling, selling or otherwise working on goods or materials that have been moved in or produced for interstate commerce. The term interstate commerce is very broadly defined. For example, cleaning personnel using cleaning products that were produced in another state is generally sufficient to make the employer subject to the FLSA. Almost all employers will be deemed engaged in interstate commerce. In addition, to be covered, the employer must have annual gross sales or business of not less than $500,000. Even if the employer is not itself a covered business, its employees or even just one employee may still be covered if they are individually regularly engaged in interstate commerce or in the production of goods for interstate commerce or in any closely-related process or occupation directly essential to such production.
