The Fair Labor Standard Act (FLSA) establishes minimum wage, overtime pay, record keeping, and child labor standards, affecting more than 80 million full- and part-time workers in the private sector and in federal, state, and local governments. Construction enterprises, which were previously covered by the FLSA regardless of their annual dollar volume of business, are now subject to a $500,000 test as described below.
FLSA covers all employees of certain enterprises having workers engaged in interstate commerce, producing goods for interstate commerce, or handling, selling, or otherwise working on goods or materials that have been moved in or produced for such commerce by any person. One of the conditions for coverage is that the enterprise has to have an annual gross volume of sales made or business done that is not less than $500,000.
FLSA specifies a minimum wage of $4.25 an hour and an overtime pay rate of not less than one and one-half times the regular wage. Some employees are excluded from the overtime pay provisions or both the overtime and minimum wage provisions. Detailed information is available at from local Wage-Hour offices.