Does FLSA apply to small businesses?

The FLSA is enforced by the U.S. Department of Labor’s Wage and Hour Division, and covers more than 143 million workers at more than 9.8 million establishments nationwide. The FLSA does not provide an exemption from these requirements specifically for small businesses.

What employers are exempt from the FLSA?

Employees at businesses that have an annual revenue of less than $500,000 and who do not engage in interstate commerce[i] Railroad workers (covered instead by the Railway Labor Act) Truck drivers (covered instead by the Motor Carriers Act) Independent contractors and freelance workers (they’re not employees)[ii]

What does it mean for an employee to be exempt?

An exempt employee is an employee who does not receive overtime pay or qualify for minimum wage. Exempt employees stand in contrast to nonexempt employees, who must be paid at least the minimum wage—and overtime when they work more than the standard 40-hour workweek.

Do all employers have to follow FLSA?

The FLSA 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.

Is it good to be an exempt employee?

Key takeaway: The advantages of hiring exempt employees include no overtime pay and more knowledge and responsibility. Downsides include higher pay rates and no ability to deduct pay for hours not worked.

How big does business have to be to be exempt from FLSA?

The FLSA does not provide an exemption from these requirements specifically for small businesses. Generally, the FLSA applies to employees of enterprises that have an annual gross volume of sales made or business done totaling $500,000 or more, and to employees individually

Are there any exemptions to OSHA for small businesses?

Other Exemptions. Additionally, people who are self-employed, farms that employ only family members, and employers of individual household workers may be exempt from certain OSHA requirements. Religious establishments also have limited exemptions, and government agencies are not regulated by OSHA.

What does production work do for exempt workers?

Production work doubles as leadership training for exempt workers. In addition, non-exempt work, such as warehouse work, gives exempt workers an insight into what hourly employees do on a daily basis. The exempt employees could very well be making decisions about non-exempt jobs.

Can a company ask exempt employees to work for free?

Employers regularly require exempt employees to go over and above a 40-hour work week without additional pay, and this approach is appropriate under wage-hour laws. And, while some media commentators have dubbed this as “working for free,” the reality is that the employees are not working for free.

What kind of exemptions are available for manufacturing?

Manufacturing Exemptions. State sales and use tax exemptions are available to taxpayers who manufacture, fabricate or process tangible personal property for sale.

What are the rights of an exempt employee?

Rights of exempt vs. non-exempt employees Non-exempt employees have rights under the FLSA, including minimum wage and overtime pay. But exempt employees do not have those rights. The only real “right” that the exempt employee has under FLSA is to be paid their guaranteed minimum salary in any week that they perform some work.

What does exempt mean in the Fair Labor Standards Act?

The Fair Labor Standards Act (FSLA) requires that any business that currently has employees categorize those employees as either exempt or non-exempt. Employees that are classified as exempt are automatically excluded from minimum wage and overtime requirements that the FSLA provides, as well as any state overtime regulations.