The Fair Labor Standards Act (FLSA) was established in 1938 by the Department of Labor (DOL) to ensure workers receive the wages owed time attendance. When the FLSA was first enacted, employers were required to pay employees at least 25 cents an hour, and that rate has risen so that covered, nonexempt workers are now guaranteed $7.25 per hour.

In addition to minimum wage rates, all covered employers must abide by youth employment, recordkeeping and overtime provisions. Coverage extends to enterprises and individuals.

Enterprises are certain businesses or organizations that have at least two employees an either accumulate at least $500,000 in sales every year, or operate as a hospital or a caregiver for a school or government agency.

However, individuals might also be covered by the FLSA if they are engaged in interstate commerce, which includes those who make out-of-state phone calls or produce goods that will be shipped across state lines. Domestic service workers, such as housekeepers, nannies and cooks are also usually covered.

If employers are uncertain whether or not they are covered by the FLSA, they can consult state regulations or outsource human resources to gain expert advice.

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