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elaws - employment laws assistance for workers and small businesses - FLSA Section 14(c) Advisor

Enterprise Coverage and Work Centers

A work center, also known as a community rehabilitation program (CRP), is an organization that traditionally provides rehabilitation services, day treatment, training, and/or employment opportunities to workers with disabilities. Such organizations were once referred to as sheltered workshops.

Work centers that are not-for-profit cannot be covered by the FLSA on an enterprise basis, regardless of their dollar volume, because their activities are not ordinarily considered to have a business purpose. However, the retail outlets of not-for-profit work centers and/or retail establishments operated by not-for-profit work centers may be covered on an enterprise basis if their annual dollar volume of sales and services is at least $500,000.

Work centers and CRPs that are operated for a profit will be covered on an enterprise basis if their annual dollar volume of sales and services is at least $500,000. Individuals employed by such enterprises are protected by all the provisions of the FLSA whether they are “staff” or “consumers.”

Employees of many work centers are also covered on an individual basis regardless of whether the work center has the dollar volume required for enterprise coverage.

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FLSA Section 14(c) Advisor | Wage and Hour Division