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.
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 firstname.lastname@example.org.
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 www.wigandassociates.com.