Compliance Requirements for Agricultural Businesses Under the Fair Labor Standards Act and Migrant and Seasonal Agricultural Workers Protection Act

Strategic Insights -

Businesses in the agricultural sector must comply with federal laws and regulations related to agricultural employment, including the Fair Labor Standards Act (FLSA) and the Migrant and Seasonal Agricultural Workers Protection Act (MSPA). These laws apply to farmers, growers, farm labor contractors, and agricultural associations, among others. Compliance is crucial to avoid penalties and ensure a fair and safe working environment for employees.

Key Takeaways:

  • The FLSA requires agricultural employers to pay a minimum wage of $7.25 per hour and overtime pay for employees who work more than 40 hours in certain industries, such as packing or processing plants.
  • The FLSA applies to businesses with at least two employees engaged in interstate commerce or $500,000 in gross sales, and to individuals who engage in interstate commerce or produce goods for commerce.
  • Exemptions to the minimum wage requirement include businesses that used no more than 500 man-days of agricultural labor in the preceding year, and employees who are family members of the owner.
  • Agricultural employers must comply with the MSPA, which protects migrant and seasonal workers by establishing employment standards and requiring registration and compliance with federal, state, and local regulations.
  • Employers must apply for MSPA certificates of registration and complete forms WH-530, WH-535, and WH-540 as applicable.
  • The NFIB's Legal Center is available to help businesses with agricultural employment questions and concerns.

Statistics:

  • $7.25: The minimum wage required by the FLSA for all employees.
  • 40 hours: The threshold for overtime pay under the FLSA.
  • 500 man-days: The exemption threshold for agricultural labor under the FLSA.
  • 13 weeks: The maximum number of weeks for local hand harvest workers to work without overtime pay under the FLSA.
  • $500,000: The gross sales threshold for FLSA applicability.

Sources:

  • National Federation of Independent Business (NFIB). (n.d.). Agricultural Employment Under the Fair Labor Standards Act (FLSA). Retrieved from Fact Sheet #12.
  • National Federation of Independent Business (NFIB). (n.d.). Federal Child Labor Laws in Farm Jobs. Retrieved from Fact Sheet #40.
  • United States Department of Labor. (n.d.). Exemptions Applicable to Agriculture, Processing of Agricultural Commodities, and Related Subjects under the Fair Labor Standards Act (29 CFR Part 780).