Who is Covered under the FLSA?
In most cases, employees working in the following enterprises are covered by the FLSA:
- Health care providers, including hospitals, care centers, urgent care, or other similar lines of business
- Learning institutions, including pre-school, elementary school, high school, college and schools for the disabled
- A local, state or federal government agency
- A private or publicly held business with a yearly dollar volume of sales or receipts of at least $500,000
Employees of business that do not have an annual dollar volume of at least $500,000 may still be covered under the FLSA if they are engaged in interstate commerce, the production of goods for commerce, or a closely related process or occupation which is directly essential to such production. This is typically easy to establish. For example, an employee who uses an employer's credit card for purchases is engaging interstate commerce.
Salaried Employees May be Entitled to Overtime •Contact a Scottsdale FLSA Attorney
Often both employers and employees assume that being paid a salary is the same as being exempt from overtime eligibility. This is often not the case. Therefore, it is important to speak with a lawyer who specializes in overtime lawsuits to determine whether your job duties qualify you for overtime pay.
For an employer to prove an employee is exempt from federal overtime requirements the employer must establish: (1) that the employee is paid by salary and earns at least $455 per week, and (2) the employee meets one of the following overtime pay exemptions:
- Executive Exemption: Employees meeting the executive exemption must manage the company or a department of the company; regularly direct the work of two or more full-time employees; and have the ability to hire or fire employees or the authority to influence such a decision.
- Administrative Exemption: Employees under the administrative exemption must regularly perform office or non-manual work directly related to the company. They must also consistently exercise discretion and independent judgment in significant matters.
- Learned Professional Exemption: Employees meeting the learned professional exemption must have a job requiring advanced knowledge in the areas of science and learning, typically acquired by an extended course of specialized study. For example, doctors, lawyers and CPAs.
- Computer Employee Exemption: Computer employees working as computer system analysts, computer programmers, software analysts or similar positions are typically exempt from overtime pay.
- Outside Sales Exemption: Employees who primarily make sales away from the worksite are exempt from overtime pay.
