Minimum Wage and Overtime Coverage

Most workers are protected by the law to obtain minimum wage and overtime. Employees can be covered by the Fair Labor Standards Act in two ways:

  • Enterprise Coverage applies:

if the employer’s business has at least two employees, and an annual dollar of sales or business done of at least $500,000.

if the employer is a hospital, businesses providing medical or nursing care for residents, school or preschool, or a government agency.

  • Individual Coverage applies:

if the work regularly involves the employee in commerce between states. Individuals are covered if they are “engaged in commerce or in the production of goods for commerce”. An example of interstate commerce may include a secretary that writes a letter to be mailed out of the state or makes long distance out-of-state phone call. It may also include a janitor that uses goods that arrived from out of state or a worker that actually produces goods for shipment outside the state.

if the employee is a domestic service worker – housekeeper, care-giver, full-time babysitter, or a cook.