The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime, record keeping, and child labor standards that most employers must adhere to. The FLSA applies only to businesses that either (1) have annual sales of $500,000.00 or more; or (2) are engaged in interstate commerce. Courts have interpreted the term “interstate commerce” very broadly. For instance, courts have held that businesses that regularly use the U.S. mail to send or receive letters to and from other states, or regularly use telephones or computers to place or accept orders, are subject to the requirements of the FLSA even if they do not have annual sales exceeding $500,000.00. Knowing whether or not the FLSA applies to your business is the first and most important step in developing your employee policies, manuals, and contracts.
To further complicate matters, there are some employees—such as “Executive,” “Administrative,” and “Professional” workers—that are exempt from the requirements of the FLSA, and are therefore not entitled to wage extras such as overtime and compensatory time. The Executive, Administrative, and Professional Exemption is the most commonly used exemption but it is also the exemption that is most often mistakenly applied. Employees do not automatically qualify as an executive, administrative, or professional simply because they receive a salary, or because they are called an “executive,” they must actually perform certain types of work in order to be considered exempt from the requirements of the FLSA. There are a number of additional types of employees that are exempt from the FLSA, and case law and guidance from the Department of Labor has helped to define these exemptions, but determining whether or not your employees are exempt from the requirements of the FLSA remains a confusing and nuanced task.
Mike helps his clients navigate the waters of the FLSA, ensuring that his clients understand the full scope of their obligations under the FLSA. Mike also assists clients in developing, drafting, and negotiating employment contracts, agreements, manuals, and policies that are tailored to the business and fully comply with FLSA standards. Finally, Mike steps in to defend his clients in the event that their business is accused of violating FLSA by an employee or agency.