Does a small employer have to comply with the Fair Labor Standards Act (FLSA)?

Author: XpertHR Editorial Team

Typically, yes. An employer with less than $500,000 in annual sales volume is not covered by the FLSA, but only if its employees are not engaged in interstate commerce. Interstate commerce need not involve the transportation of goods across state lines; it can involve something as simple as regularly making telephone calls to people in other states, handling records of interstate transactions, traveling to other states on the job, and even doing janitorial work in buildings where goods are produced for shipment.