Does the FLSA Apply to My Company?

I often read about the requirements of the federal Fair Labor Standards Act.  How do I know if this law applies to our organization, particularly if we’re also covered by California wage and hour laws?  — Francesca in Merced

The Fair Labor Standards Act (FLSA) is the key federal law regarding wage and hour matters. The FLSA applies in all states, but states are permitted to enact laws that offer workers greater protections. Usually, California wage and hour laws are stricter than the FLSA; when the laws conflict, you must follow the one that results in the more favorable outcome for the employee.

Most California employers and employees are covered by the FLSA. Employers subject to the FLSA include all enterprises that have an annual dollar volume of sales or business done of at least $500,000. The FLSA also applies to all: hospitals; institutions that primarily care for the sick, aged, mentally ill, or disabled who reside on the premises; schools for children who are mentally or physically disabled or gifted; preschools, elementary, and secondary schools and institutions of higher education; and federal, state, and local government agencies.

Even if a business isn’t covered under the above rules, an individual employee of that business will still be subject to the FLSA’s provisions when that person individually engages in interstate commerce or in producing goods for interstate commerce. This includes employees who work in communications or transportation; regularly use the mail, telephone, or telegraph for interstate communication or keep records of interstate transactions; handle, ship, or receive goods moving in interstate commerce; regularly cross state lines in the course of employment; or work for independent employers that contract to do clerical, custodial, maintenance, or other work for firms engaged in interstate commerce or in producing goods for interstate commerce.