Does the Fair Labor Standards Act apply to all employers?

Louisianans may have heard of the Fair Labor Standards Act (FLSA) and may wonder if it applies to them. First and foremost it is important to have a basic understanding of the FLSA is. FLSA is a federal law, which has instituted legal requirements for employers by establishing minimum wage requirements, overtime pay requirements, record keeping and child labor standards.

However, FLSA jurisdiction is limited and is not all encompassing. It does not regulate some issues that routinely arise in employment settings such as limit on hours an employee can work, pay raises, termination of employees, vacation, sick, severance and holiday pay.

In general, if an employer is involved in interstate commerce, manufacturing goods that will be handled or sold and will be involved in interstate commerce, then FLSA may apply to those employers. Additionally, FLSA covers tipped employees — those employees who get at least 30 dollars per month in the form of tips. When it comes to tipped employees, the employer must take the tips the employees receives into consideration when paying the tipped employee direct wages

As with any law, under FLSA there are some exemptions and these apply to workers in farm work, seasonal employee and certain administrative positions. The Wage and Hour Division of the Department of Labor does investigate employers to ensure that they are in compliance with FLSA regulations. Those employers who are determined through the investigation to have violated the law may be subjected to criminal penalties, fines and even imprisonment. Thus, it is important to consult with an employment law firm familiar with FLSA and it exemptions to ensure that one is in compliance with the law.

Source: U.S. Department of Labor, “Handy Reference Guide to the Fair Labor Standards Act,” Accessed Sept. 7, 2015