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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 FLSA covers these establishments whether they are public or private or whether operated for profit or not-for-profit.

The term "hospital" refers to those establishments which primarily engage in the offering of 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 a hospital as part of the hospital.

The phrase institution primarily engaged in the care of the sick, the aged, the mentally ill or developmentally disabled who live on the premises means an institution (other than a hospital) primarily engaged in (i.e. more that 50% of the 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, will require only general treatment or observation of a less critical nature than that provided by a hospital. Such institutions are not limited to nursing homes, whether they are licensed or not licensed, 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:

Is your company/organization a hospital or an institution primarily engaged in the care of the sick, the aged, the mentally ill or developmentally disabled who live on the premises?

UNITED STATES
DEPARTMENT OF LABOR