Q & A – Who is covered by wage and hour law?

Q: Who is covered by wage and hour law?

A: Wage and hour laws exist at the federal, state, and sometimes local level. At the federal level, under the Fair Labor Standards Act, an employer is covered if they are a "covered enterprise," meaning that they transact a certain amount of business annually, or if the individual in question is a "covered individual," meaning that the individual engages in "interstate commerce." For purposes of individual coverage, interstate commerce may be as simple as the employee communicating with an out-of-state individual or placing an order from an out-of-state source. Most employers are covered by the FLSA.

For guidance on whether you are covered by federal, state, and/or local laws, please consult with an Employers Council professional.