Though the Department of Labor currently is revisiting certain aspects of the FLSA, one aspect that remains unchanged is that “enterprise coverage” of a business under the Act attaches where the business has “employees engaged in commerce or in the production of goods for commerce” and has “annual gross volume of sales made or business … Continue Reading
The high volume of FLSA litigation, particularly in jurisdictions such as New York and Florida, has in recent years forced many small businesses truly outside the scope of FLSA coverage to defend lawsuits brought pursuant to its minimum wage and overtime provisions. Typically, these smaller employers attempt to address the issue of coverage early in … Continue Reading
While FLSA coverage—both so-called “enterprise” based coverage and individual coverage of a specific worker—remains broad, such coverage generally does not extend to individuals who do not work for a covered enterprise and do not “directly participate in the actual movement of persons or things in interstate commerce.” In reviewing a trial court decision, the Court … Continue Reading
In a case addressing coverage under the FLSA, Federal Judge Ramona V. Manglona from the District of the Northern Mariana Islands held coverage was not triggered merely because a cook in Saipan accessed the Internet to obtain recipes. Dean v. Pac. Bellwether, LLC, 2014 U.S. Dist. LEXIS 15797 (D. N. Mar. I. Feb. 6, 2014). … Continue Reading
When small and medium-sized businesses are sued under the Fair Labor Standards Act, a common litigation issue is whether or not the defendant-employer – or the plaintiff-employee – is covered under the Act, through either its broad “enterprise coverage” or “individual coverage” of the worker’s employment. Where enterprise coverage is not present, typically because the business … Continue Reading
Enterprise coverage under the Fair Labor Standards Act is broadly defined, seeking to include in its expansive definition of FLSA covered employers substantially all businesses with greater than $500,000 in gross revenues which have “employees engaged in commerce or in the production of goods for commerce, or that have employees “handling, selling, or otherwise working … Continue Reading
