What is the FLSA, and to whom does it apply?
This is the key question we have addressed in this blog post, which introduces you to yet another short training video titled “Does The FLSA Apply To Me? (Probably…).” By way of backdrop, we have dealt with the Fair Labor Standards Act in our past blog posts. For instance, in our blog post “New York City Labor Law on Compensation, Wage, and Hour Issues,” we hammered on various issues, including “exemptions for overtime pay under the Fair Labor Standards Act (FLSA),” “the New York City’s Fair Workweek Law,” “commuter benefits,” and “employee sick and leave time.” Furthermore, in a recent blog post titled “Damages Available to Plaintiffs in FLSA Misclassification Claims,” we provided you with key information regarding the damages available to plaintiffs who prevail in FLSA misclassification claims. However, as the matter of discussion in the blog post and the video it has been created from, one important question remains – to whom does the FLSA exactly apply?
To answer this question, let us get down to it!
Does The FLSA Apply To Me? (Probably…)
For starters, it is crucial to mention that, among other states, New York has seen a spurring growth in troll attorneys who, while only focused on the dollar entering their pockets, do not care and have no credibility at all in key legal matters. We have met some who have miscalculated something because while the threshold in New York is high, you have to pay a lot in order to be exempt. The FLSA is typically not too stringent but uses unique language in itself and complex terminology, and while it is a comprehensive statute, it tries to incorporate and encompass as much information related to minimum wage, employee sick and leave time, and exemptions/requirements for overtime pay, among other issues as possible.
Essentially, with the primary goal of protecting workers against certain unfair employment and pay practices, the FLSA sets out a broad range of regulations and rules regarding how employers should deal with employees, whether paid on an hourly or a salary basis. Basically speaking, the FLSA applies to employees working for enterprises that (a) have an annual gross volume of sales made or business income amounting to $500,000 or more and (b) employees engaged in interstate commerce or the production of goods for commerce. It is critical to understand that under the FLSA, interstate commerce refers to business transactions or the movement of money, goods, services, or products across state borders. This applies to commerce in the international context or the nationwide economy as a whole.
Thus, pursuant to 29 U.S.C. § 207, overtime provisions under the FLSA apply if the employee is engaged in commerce or the production of goods for commerce or if such an employee works in an enterprise whose annual gross income is $500,000 or more. When it concerns the employer, it is known as the enterprise theory of the FLSA. Accordingly, the theory stipulates that the statute covers enterprises in which (a) employees either handle, sell, or otherwise work on the production of goods or materials that are moved or produced from commerce or (b) work in enterprises whose annual gross sales volume or business done is not less than $500,000.
Please, feel free to watch the Video and leave us a comment on your thoughts. As we continue hammering on new stuff daily, stay tuned for more educational videos, inspiring training, & legal advice. In the interim, if there are any questions or comments, please let us know at the Contact Us page!
Always rising above the bar,
Isaac T.,
Legal Writer & Author.
