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| Employment Standards Administration Wage and Hour Division |

Fact Sheet #1: The Construction Industry Under the Fair Labor Standards Act (FLSA)
This fact sheet provides general information concerning the application      of the FLSA to the construction industry.
Characteristics
Businesses involved in this industry are engaged in the activities of      new construction or reconstruction. The repair or renovation of existing      commercial and/or residential structures, as well as roadway and bridge      construction, are also a part of this industry. The following work      activities are included in the construction industry: painting,      sandblasting, tuckpointing, roofing, guttering, spouting, water well      drilling, installation of flooring and landscaping.
Coverage
A business in the construction industry must have two or more employees      and have an annual sales volume of $500,000 or more to be subject to the      law. Individual coverage applies to employees whose work regularly      involves them in commerce between states ("interstate commerce").      Any person who works on or otherwise handles goods that are moving in      interstate commerce or who works on the expansion of existing facilities      of commerce is individually subject to the protection of the FLSA and the      current minimum wage and overtime pay requirements, regardless of the      sales volume of the employer.
Requirements
Employers who are covered under the FLSA must comply with the record      keeping requirements of Regulations, 29 CFR Part 516. 

Also, an employer must establish a workweek (7 consecutive 24-hour      periods) and must pay overtime when hours worked exceed 40 in the      workweek. The practice of paying overtime only after 80 hours in a bi-weekly      pay period is illegal since each workweek stands alone.

For non-exempt employees, covered employers must pay the Federal      minimum wage and time and one half the regular rate of pay for time worked      over 40 hours in a workweek. These businesses must also be aware of the      potential for violations of the Child Labor requirements of the FLSA. This      is especially critical due to the dangerous nature of both the work      performed and the tools used in this industry.

If the employer performs work on a federally financed project or a      project in which the Federal government has provided assistance in      financing the project, a different and somewhat stricter set of labor      standards applies. Typically this would require that employees performing      on such contracts be paid a "prevailing wage rate".

Youth Minimum Wage: The 1996 Amendments to the FLSA allow employers to      pay a youth minimum wage of not less that $4.25 an hour to employees who      are under 20 years of age during the first 90 consecutive calendar days      after initial employment by their employer. The law contains certain      protections for employees that prohibit employers from displacing any      employee in order to hire someone at the youth minimum wage.
Typical Problems
(1) Failure to record all hours actually worked to include time spent      before or after the shift. (2) Shorting of hours by using terms such as      down time or rain delay. (3) Failure to compensate for meal breaks where      the employee is not completely relieved of all duties to enjoy uninterrupted time      for the meal. (4) "Banking" of overtime hours or payment of      overtime in the form of "comp time". (5) Failure to combine the      hours worked for overtime purposes by an employee in more than one job      classification for the same employer within the same workweek. (6) Failure      to segregate and pay overtime hours on a workweek basis when employees are      paid on a bi-weekly or semi-monthly basis. (7) Failure to pay for travel      from shop to work-site and back.

**Some Other Pertinent Labor Laws:** (1) The Immigration Reform and      Control Act requires employers to complete and maintain I-9 forms to      verify the employment eligibility of all individuals hired after November      6, 1986. (2) The Wage Garnishment Law limits the amount of an individual's      income that may be garnished and prohibits firing an employee whose pay is      garnished for a single debt. (3) The Employee Polygraph Protection Act      prohibits most private employers from using any type of lie detector test      either for pre-employment screening or during the course of employment.      (4) The Family and Medical Leave Act requires covered employers to provide      eligible employees up to 12 weeks of unpaid, job-protected leave each year      for specified family and medical reasons. (5) The Davis-Bacon and Related      Acts require payment of prevailing wages on federally funded or assisted      construction projects. 
Where to Obtain Additional Information
This publication is for general information and is not to be considered      in the same light as official statements of position contained in the      regulations.

**For additional information, visit our Wage-Hour website: http://www.wagehour.dol.gov and/or call our Wage-Hour toll-free information and helpline, available 8am to 5pm in your time zone, 1-866-4USWAGE (1-866-487-9243).**

 

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