Who is covered by the laws on tipped employees?
More than a hundred million American workers are protected (or “covered”) by the FLSA. There are two ways in which an employee can be covered: “enterprise coverage” and “individual coverage.” Either standard is sufficient for you to be covered and entitled to receive the minimum wage. Enterprise coverage: Employees who work for certain businesses or organizations (or “enterprises”) are covered by the FLSA. These enterprises, which must have at least two employees, are: • those which do at least $500,000 a year in business; or • hospitals, businesses providing medical or nursing care for residents, schools and preschools, and government agencies Individual coverage: Even when there is no enterprise coverage, employees are protected by the FLSA if their work regularly involves them in commerce between states (“interstate commerce”). In its own words, the law covers individual workers who are “engaged in commerce or in the production of goods for commerce.” • Examples of employees who are
