Enterprise Engaged in Interstate Commerce or in the Production of Goods for Commerce | Practical Law

Enterprise Engaged in Interstate Commerce or in the Production of Goods for Commerce | Practical Law

Enterprise Engaged in Interstate Commerce or in the Production of Goods for Commerce

Enterprise Engaged in Interstate Commerce or in the Production of Goods for Commerce

Practical Law Glossary Item 8-502-3865 (Approx. 2 pages)

Glossary

Enterprise Engaged in Interstate Commerce or in the Production of Goods for Commerce

Under the Fair Labor Standards Act of 1938 (FLSA), an enterprise that either:
  • Has gross annual sales or business of at least $500,000, as well as either:
    • employees engaged in commerce or producing goods for commerce; or
    • employees handling, selling or working on goods or materials moved in or produced for commerce.
  • Is engaged in the operation of a for-profit or non-profit:
    • hospital;
    • school for mentally or physically handicapped or gifted children;
    • institution that primarily provides live-in care for sick, elderly or mentally ill people;
    • preschool, elementary or secondary school; or
    • institution of higher education.
  • Is an activity of a public agency.
Family businesses where the regular employees are all part of the owner's immediate family are not enterprises engaged in interstate commerce or in the production of goods for commerce (29 U.S.C § 203 (2007)).