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FLSA Overtime Exemption

For a company who owns multiple stores in various states, is overtime exemption based on sales of $500,000 under the FLSA based on each individual store’s sales or is it computed based on the company’s total sales between all the stores?

The federal Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments. Employees under the FLSA are either non-exempt or exempt from overtime provisions.

There are two ways in which employees can be covered under the FLSA; enterprise coverage or individual coverage.

Enterprise coverage includes organizations that have at least two employees and annual sales of at least $500,000. The company’s total sales between all locations are considered towards the annual volume.

In the absence of enterprise coverage, employees are covered under the FLSA if their work regularly involves them in interstate commerce. The FLSA covers individual workers who are engaged in commerce or in the production of goods for commerce.

This entry was posted on Wednesday, September 2nd, 2015 at 9:27 pm and is filed under
Labor Laws.
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