- Fair Labor Standards Act Advisor
Coverage - One Enterprise
The Fair Labor Standards Act (FLSA) stipulates that two or more business entities will be considered to be one enterprise when they involve: (1) related activities performed either through (2) unified operation or (3) common control by any person or persons for a (4) common business purpose.
- Related activities are the same or similar activities, such as those of the individual retail or service stores in a chain. Activities are also related when they are auxiliary and service activities generally necessary to the operation of a particular business, such as warehousing, bookkeeping, auditing, purchasing, and advertising. Likewise, activities are related when they are part of a vertical structure such as the manufacturing, warehousing, and retailing of a particular product or products.
- Unified operation means combining, uniting or organizing the performance of related activities so as to be in effect a single business unit or organized business system which is directed to the accomplishment of a common business purpose.
- Common control exists where a number of persons, corporations or other organizational units have the power or authority to direct, regulate, govern or administer the performance of related activities. Common ownership is not a prerequisite for common control; sufficient ownership to exercise control, however, will constitute common control.
- Common business purpose will encompass activities directed to the same or similar business objectives, whether performed by one or more persons, corporations, or other business organizations.