Who is covered under the Fair Labor Standards Act?

Wisconsin employees may be subject to the protections of the federal Fair Labor Standards Act depending on whether or not their employers are covered enterprises. A company may be considered to be a covered enterprise if it has $500,000 or more in gross revenue annually. It may also be considered a covered enterprise if it engages in activities that care for the sick or those of an old age.

Construction and dry cleaning enterprises were covered enterprises regardless of what their sales volumes were until April 1990. They are now subject to the same $500,000 annual sales test in terms of being classified as a covered enterprise. Companies that were covered enterprises prior to March 1990 that thereafter failed the $500,000 test are still subject to other provisions under the FLSA.

Even if a company may not be considered to be a covered enterprise, it may still need to meet other reporting provisions if it operates in more than one state. Household workers such as babysitters or housekeepers may be covered under some FLSA provisions. This is true if they make more than $1,000 a year in a calendar year and work for more than eight hours a week for the same employer.

If an employee believes that his or her employer violated wage or any other employment law, it may be worthwhile to talk to an attorney. An attorney may be able to help an affected client win compensation and possible reinstatement. Back wages and benefits may be available to those who are wrongfully terminated. They may also be entitled to pay and benefits upon reinstatement based on what they would have been if the employee had not been terminated.

Source: FindLaw, “Federal Wage Law: The Fair Labor Standards Act”, accessed on March 10, 2015

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