Fair Labor Standards Act Advisor

Grandfather Coverage

When the Fair Labor Standards Act (FLSA) was changed in 1990, the definition of a covered enterprise changed. Enterprises that were covered by the FLSA on March 31, 1990 continue to be subject to the overtime pay, recordkeeping and the child labor requirements, and the $3.35 per hour minimum wage requirement ($3.35 was the minimum wage in effect on 3/31/90). This is called grandfather coverage. Included in grandfather coverage are:

• Construction and/or reconstruction enterprises,
• Laundry and/or dry cleaning enterprises,
• Retail enterprises with annual dollar volume of sales or receipts in the amount of $362,500 or more, and
• Non-retail enterprises with annual dollar volume of sales or receipts of $250,000 or more.

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