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The $500,000 Rule

September 25, 1998
Related Topics: Wages and Hours, Featured Article
You may have heard that only employees of businesses with gross sales volumes of $500,000 are covered under the Fair Labor Standards Act (FLSA) and its various minimum wage, overtime and other laws. Does that mean if your business is smaller, your employees are not covered?

Your employees may be covered regardless of the size of your business. Employees of firms not covered under the FLSA (FLSA) may still be subject to minimum wage, overtime, and child labor provisions of the law if they are engaged in interstate commerce. Interstate commerce can include regular use of mail, telephone (possibly including credit-card transactions), and other communications.

If you’re concerned about this section of the law, contact your attorney and your state department of labor.

Source: U.S. Department of Labor, Washington, D.C., August 1998.

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