Monday, June 11, 2012

Are small companies covered by the Overtime Laws?


An employer falls under the enterprise coverage section of the Fair Labor Standards Act if it (1) has employees engaged in commerce or in the production of goods for commerce, or that has employees handling, selling, or otherwise working on goods or materials that have been moved in or produced for commerce by any person and (2) has at least $ 500,000 of annual gross volume of sales made or business done. 29 U.S.C. § 203(s)(1)(A).
Therefore, if the employee works for a company that grosses more than $500,000 on an annual basis and the employee handles goods or materials that were at any time in the past produced in or moved interstate, then that company is covered by the Fair Labor Standards Act even if it only has a few employees.
Polycarpe v. E & S Landscaping Serv.,  616 F.3d 1217 (11th Cir. 2010)


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