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The federal DOL overtime regulations go into effect this year. Are you ready?

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This report includes a summary of key changes, including the salary level test and salary basis test.

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February 27, 2010
Covered Enterprises and Exceptions to Federal Minimum Wage Laws

In a BLR webinar entitled "Wage & Hour Risks in 2010: Preventing the Most Common (and Costly) Wage & Hour Mistakes," attorneys Mark E. Tabakman and Thomas C. Wigand discussed what defines a “covered enterprise” with regards to the federal Fair Labor Standards Act (FLSA). They also highlighted four notable exceptions to federal minimum wage laws.

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Virtually all employers are subject to FLSA minimum wage requirements either because the employer is a “covered enterprise” or because its employees engage in interstate commerce.

A "covered enterprise" as defined under the FLSA includes:

  • All businesses that have $500,000 or more in annual sales or receipts
  • Businesses that operate hospitals or residential care facilities for the elderly or people with disabilities
  • Schools and government agencies

An employer may pay four groups of employees below the minimum wage:

  • People with mental or physical disabilities
  • Full-time students
  • Certain employees under age 20 ("opportunity wages")
  • Certain employees who receive tips

Mark E. Tabakman, Esq., is a partner in the nationwide law firm Fox Rothschild, LLP. He can be contacted by e-mail at

Thomas C. Wigand, SPHR, Esq., is the founder of Wigand Associates LLP, an employment advisory consulting practice based in Middletown, Rhode Island. He can be contracted by visiting

Featured Special Report:
Top 100 FLSA Overtime Q&As
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