Coverage of the Fair Labor Standards Act: What Connection with Commerce Brings an Employee Within the Coverage of the Fair Labor Standards Act? Part I

If you work in a job that involves selling things, making things for sale, or working for a business that sells things, you have to be paid at least the minimum wage. If you work more than 40 hours in a week, you have to be paid extra for those extra hours. This applies to businesses that make at least $500,000 in sales each year and have at least two employees doing work related to selling or making things for sale. This rule was added in 1961 to make sure more employees are protected by these pay laws. The changes made to the Fair Labor Standards Act (FLSA) shifted the focus from employees to employers for coverage. Now, if a company has two or more employees involved in commerce or making goods for commerce, the whole company is covered, not just those specific employees. Congress also expanded coverage to businesses whose employees handle or work on goods that have been moved for commerce. Understanding how the courts interpret what activities are connected to commerce is important when looking at FLSA cases. The Fair Labor Standards Act (FLSA) covers employees who are engaged in producing goods for commerce or are directly involved in interstate commerce. For example, in Kirschbaum v. Walling, employees who worked in a building housing clothing manufacturers were found to be engaged in the production of goods for commerce. However, not all employees in a commercial building are covered by the FLSA. Employees who only worked in the building and did not produce goods for commerce were found not to be engaged in commerce in 10 East 40th Street Building, Inc. v. Callus. Additionally, employees involved in intrastate deliveries of merchandise ordered from out of state were also found to be covered by the act. Similarly, warehouse workers who unloaded and loaded trucks of fish were ruled to be engaged in commerce, as were elevator operators who transported interstate mail and freight within a building. In a 2005 case called Alonso v. Garcia, the 11th Circuit court decided that a driver working for a pest control company was involved in commerce. He delivered materials and chemicals that had been moved across state lines to the company’s customers. The court said that the materials were still part of commerce until they reached the customers. In a court case, employees who worked at a junkyard salvaging and selling parts from cars were considered to be engaged in business. But in another case, a person who bought supplies for their employer and used tools from out of state was not covered under the law. A houseparent at a youth home was also not considered to be engaged in business. In different cases, employees who handled empty bottles and designed a product for national distribution were considered to be engaged in business. In other cases, employees who prepared reports for out-of-state directors and provided security for film production companies were also considered to be engaged in business. The Iowa Supreme Court ruled in Ristau v. Tours, Inc., 593 N.W.2d 115 (Ia. 2003), that a person who worked at an apartment building was not considered to be involved in business or making things for business. Even though she bought and used materials that had been transported in business, she was not covered by the law. “Using goods does not mean making goods.” The next part of this article will be in the June issue of The Florida Bar Journal and will talk more about how the law expanded to cover more employees in 1961 and 1974. This is a legal article discussing the laws related to minimum wage. It includes references to specific sections of the law and court cases. It also mentions recent legislation to increase the minimum wage. The article explains how certain amendments to the law have been interpreted differently by courts. It also discusses different situations where employees may or may not be involved in producing goods for commerce. Overall, it’s a complex topic about minimum wage laws and court cases related to them. Donald J. Spero is a lawyer who has been practicing labor and employment law for over 35 years. He helps settle disputes between employers and employees. He used to work for Sears, Roebuck and Co. and now spends his time mediating and arbitrating cases. He also writes and speaks about employment law.

Source: https://www.floridabar.org/the-florida-bar-journal/coverage-of-the-fair-labor-standards-act-what-connection-with-commerce-brings-an-employee-within-the-coverage-of-the-fair-labor-standards-act-part-i/