The Fair Labor Standards Act is a federal labor law outlining minimum wages and overtime pay, among other labor-related provisions for employees.
However, these conditions do not apply to all employers and employees. Here are some exemptions under the FLSA.
Employer exemptions
Employers must have $500,000 in sales annually or do business in other states for the FLSA to apply. Communicating with potential customers in other states is often enough to classify as interstate commerce. Employers who use almost no outside labor are also commonly exempt from the FLSA.
Employee exemptions
Several groups of white-collar employees are exempt from coverage under the FLSA. Managerial positions, such as executives, administrators and learned and creative professionals, with weekly salaries of $684 or more are typically exempt. The FLSA also excludes computer employees making $684 or more a week and salespeople who work mostly away from their place of employment and earn a commission.
Blue-collar employees do not qualify for exemption from the FLSA and are entitled to its minimum wage and overtime provisions. Following the FLSA, employers must pay blue-collar employees the federal minimum wage of $7.25 or higher and time-and-a-half overtime pay. The FLSA’s scope does not extend into state minimum wage laws, however. For example, the New York state minimum wage is $14.20 per hour and $15 in New York City, but the FLSA only protects the federal minimum wage of $7.25.
The FLSA, while a necessary layer of employee protection, is a complicated law. Unfortunately, employers may take advantage of its intricate nature to avoid paying employees what they should. For this reason, it is essential to understand exemptions under the FLSA.