Do all employers have to comply with the FLSA?

The Fair Labor Standards Act (FLSA) guarantees employees rights to certain benefits, such as overtime pay and minimum wage, if they work for certain covered enterprises. This means employers that fall into this category are expected to compensate workers are per the FLSA's requirements, or they could face penalties for noncompliance.

Federal, state and local government agencies are all considered enterprises under the FLSA, as do hospitals, educational institutions that are public or private and any business that collects more than $500,000 annually in sales receipts. The coverage also applies to certain entities engaged in interstate commerce, while some employees are guaranteed the same rights on an individual basis.

For instance, employers of domestic service worker are also covered by the FLSA, which means individuals who have hired cooks, butlers, maids, animal groomers and gardeners to work for a family must consider them an employee and follow the guidelines established by the Department of Labor for proper compensation

Moreover, this means all covered employers are vulnerable to investigations by the Wage and Hour Division if they are not paying employees for all of their time attendance. To avoid violations and penalties, they should invest in a payroll processing system that can track employee attendance and generate accurate reports.