The Fair Labor Standards Act (FLSA) is the federal wage law covering minimum wage, overtime, payroll records and child labor. Enforcement belongs to the Wage and Hour Division of the U.S. Department of Labor, and workers can also sue. This page is for owners and managers of U.S. businesses with ties to India or Canada, such as a foreign-owned LLC hiring near Aurora. Page 2 has the checklist.
Who does the Fair Labor Standards Act cover?
| Test | Rule |
|---|---|
| Enterprise coverage | Yearly sales of $500,000 and at least 2 employees. Coverage applies at any dollar level to schools, hospitals, care facilities and government agencies. |
| Individual coverage | Small-firm employees are covered if their work regularly involves interstate commerce. |
| Nonprofits | Enterprise coverage counts only business-like activity, for example a gift shop; individual coverage can still apply. |
| White-collar exemptions | Need both a salary and a duties test. Outside sales, teachers, and practicing lawyers and doctors have no salary test. |
| Highly paid office staff | $107,432 total pay, including $684 a week in salary, plus regularly doing an exempt duty. |
| Overtime | Private employers pay it in cash. Comp time is for government employers. |
What does it mean for a foreign-owned or cross-border business?
| Situation | What the law says | What to check |
|---|---|---|
| Owner lives in India or Canada | The coverage tests look at headcount, sales and interstate work. Owner residence is not a listed test. | Count U.S. employees and sales. |
| Staff on visas or paid by a foreign parent | Pay rules turn on hours, pay and duties. This page does not cover immigration status. DOL proposed a joint-employer rule on April 23, 2026; it is not final. | Note who sets hours and pay. See hiring US employees from abroad; take visa questions to an immigration attorney. |
| Contractors on invoice | DOL says a label or signed agreement does not decide status. The IRS uses its own test. | Review each contractor; see the employer checklist and withholding on foreign payees. |
Where do I go next?
Continue to FLSA rules and checklist. Related: Title VII, the Illinois Wage Payment and Collection Act, the Illinois payroll guide and the federal section.
Frequently asked questions
Does the FLSA apply if the owner lives in India or Canada?
The coverage tests look at employees, sales and interstate work, and owner residence is not among them. Whether a worker is covered depends on the facts, so an employment attorney should confirm.
Official sources
- U.S. Department of Labor, Wage and Hour Division: Fair Labor Standards Act
- U.S. Department of Labor: Minimum wage
- U.S. Department of Labor: Fact Sheet 14, Coverage under the FLSA
- eCFR: 29 CFR 541.600, salary level for exempt employees
- U.S. Department of Labor: Civil money penalty inflation adjustments
This page summarizes public guidance in plain language. If anything here differs from the official source, the official source controls.