Are You Subject to the FLSA?

The process of determining your liability under the federal wage and hour law, known as the "Fair Labor Standards Act" or FLSA, involves three steps:

  1. Are you covered as an employer? If so, all of your employees will be covered by the FLSA.
  2. Are any individual employees covered, even if you're not covered as an employer?
  3. Any covered employees must be classified as exempt or nonexempt employees.