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Enterprise Engaged in Commerce or in the Production of Goods for Commerce
Understanding Enterprise Engaged in Commerce or in the Production of Goods for Commerce
Definition & Meaning
An enterprise engaged in commerce or in the production of goods for commerce refers to a business that meets specific criteria related to its operations and revenue. This includes businesses that:
Employ individuals who are involved in commercial activities or the production of goods for sale.
Have an annual gross sales volume of at least $500,000, excluding certain taxes.
Operate as hospitals, educational institutions, or public agencies.
Additionally, businesses that only employ the owner and their immediate family members are not classified as enterprises for these purposes.
Table of content
Legal Use & context
This term is commonly used in various legal contexts, particularly in labor and employment law. It helps determine the applicability of certain regulations, such as the Fair Labor Standards Act (FLSA), which sets standards for minimum wage and overtime pay. Understanding whether a business qualifies as an enterprise engaged in commerce is crucial for compliance with federal and state labor laws.
Users can manage related legal forms and procedures with tools like US Legal Forms, which provides templates drafted by licensed attorneys.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A retail store that employs ten staff members and has annual sales of $600,000 qualifies as an enterprise engaged in commerce.
Example 2: A local hospital providing healthcare services to the community is considered an enterprise engaged in commerce, regardless of its profit status.
Relevant laws & statutes
The primary statute relevant to this term is the Fair Labor Standards Act (FLSA), which outlines the definitions and requirements for enterprises engaged in commerce. Other laws may include state-specific labor regulations.
State-by-state differences
Examples of state differences (not exhaustive):
State
Notes
California
Higher minimum wage laws may affect compliance for enterprises.
Texas
Different thresholds for small businesses regarding employee classification.
New York
Specific regulations for healthcare institutions engaged in commerce.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Key Differences
Commercial Enterprise
A business engaged in selling goods or services.
Broader than the specific definition of "enterprise engaged in commerce."
Small Business
A privately owned corporation or sole proprietorship.
May not meet the $500,000 sales threshold.
Common misunderstandings
What to do if this term applies to you
If you believe your business qualifies as an enterprise engaged in commerce, ensure compliance with relevant labor laws. You may want to:
Review your annual sales and employee structure.
Consult legal resources or templates available on US Legal Forms for guidance.
Consider seeking professional legal advice if you have specific questions or concerns.
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