For non-retail enterprises operating before April 1, 1990, what is the gross annual sales threshold to be covered under the FLSA?

Study for the AIPB Mastering Payroll Exam. Review flashcards and questions with explanations. Prepare effectively and boost your confidence!

The gross annual sales threshold for non-retail enterprises operating before April 1, 1990, to be covered under the Fair Labor Standards Act (FLSA) is indeed $250,000. This threshold is significant because it determines which businesses are subject to federal minimum wage and overtime pay regulations.

The historical context for this threshold is rooted in the FLSA's aim to protect workers in businesses that engage in interstate commerce. The $250,000 figure was established to include a wide range of business types, ensuring that entities with higher sales volumes, which can be expected to engage in interstate business activities, are held to these labor standards.

Understanding this amount helps clarify the legal framework surrounding employee rights and employer responsibilities. Businesses falling below this threshold are typically not subject to FLSA regulations, although they may still be governed by state laws that could provide different standards for wage and hour regulations.

Recognizing the importance of this threshold allows for better compliance and awareness among employers and employees regarding their rights and obligations under the law.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy