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U.S. Department of Labor Seal U.S. Department of Labor

Fair Labor Standards Act Advisor

Enterprise Coverage - Hospitals and Residential Care Facilities

These enterprises include hospitals, skilled nursing homes, intermediate care facilities, and nursing and personal care facilities. The Fair Labor Standards Act (FLSA) covers these establishments whether they are public or private, or whether operated for profit or not-for-profit.

The term "hospital" refers to establishments which primarily offer medical and surgical services to patients who generally remain at the establishment either overnight, several days, or for extended periods. Clinics and dispensaries are not included within the term “hospital” unless operated by the hospital as part of the hospital.

The phrase “institution” refers to establishments primarily engaged caring for the sick, aged, mentally ill, or developmentally disabled who live on the premises. It means an institution (other than a hospital) primarily engaged in (i.e. more than 50 percent of their income is attributable to) providing personal care to individuals who reside on the premises and who, if suffering from physical or mental infirmity or sickness of any kind, require only general treatment or observation of a less critical nature than that provided by a hospital. Such institutions aren’t limited to nursing homes, whether they’re licensed or not, but include those institutions generally known as rest homes, convalescent homes, homes for the elderly, the ill, and the like.

Questions as to whether an establishment is a hospital or residential care facility frequently arise for the following types of establishments:

Based on the information provided, do you work for a hospital or institution primarily engaged in the care of the sick, aged, mentally ill, or developmentally disabled who live on the premises?

UNITED STATES
DEPARTMENT OF LABOR