Who must follow the Fair Labor Standards Act?

Who must follow the Fair Labor Standards Act?

• A. Only federal agencies
• B. All employers with at least 1 employee
• C. Small businesses with under 50 employees
• D. Any company with overtime requirements

Answer: (B)

FLSA coverage is broad and can apply to private employers as well as government entities, as long as workers fall into either enterprise coverage or individual coverage. If a business has at least one employee and that employee handles tasks that affect interstate commerce, or if the business as a whole has annual gross sales of $500,000 or more, the employer must follow the FLSA. That’s why having even a single employee can bring a company under FLSA rules. The other options aren’t accurate because: federal agencies aren’t the only subjects of FLSA—private employers can be covered too; having a small workforce by itself doesn’t automatically exempt a business from FLSA since an individual employee might still be covered through interstate commerce or the enterprise threshold; and simply noting that a company has overtime rules doesn’t determine FLSA coverage, since exemptions and eligibility for coverage depend on duties, earnings, and the enterprise or individual coverage tests.

FLSA coverage is broad and can apply to private employers as well as government entities, as long as workers fall into either enterprise coverage or individual coverage. If a business has at least one employee and that employee handles tasks that affect interstate commerce, or if the business as a whole has annual gross sales of $500,000 or more, the employer must follow the FLSA. That’s why having even a single employee can bring a company under FLSA rules.

The other options aren’t accurate because: federal agencies aren’t the only subjects of FLSA—private employers can be covered too; having a small workforce by itself doesn’t automatically exempt a business from FLSA since an individual employee might still be covered through interstate commerce or the enterprise threshold; and simply noting that a company has overtime rules doesn’t determine FLSA coverage, since exemptions and eligibility for coverage depend on duties, earnings, and the enterprise or individual coverage tests.