Wage and Hour Division (WHD)
Section 64b02: Individual Coverage
- Since some facilities are not covered on an enterprise basis, the INV must frequently determine if employees are covered individually. Workers are covered on an individual basis if they are engaged in commerce, in the production of goods for commerce, or if they are performing work that is closely related and directly essential (CRADE) to the production of goods for commerce (see FLSA sections 3(j) and 6(a)).
- Typical work activities which result in employees being covered on an individual basis include:
- Subcontract work: A work center or other employer may obtain contracts requiring the assembling, packaging, or sorting of goods which, after the work is done, move from the work center directly into the stream of interstate commerce or back to the contractor who, in turn, ships them in interstate commerce.
- Primary manufacturing: A work center or other employer may manufacture or produce goods and then ship them directly or indirectly into interstate commerce.
- Salvage operations: A work center or other employer may collect used goods which are reprocessed, salvaged, or repaired and then sold to dealers who return them to the flow of interstate commerce.
- A worker with a disability engaged in work described in (b) above would be covered on an individual basis in every workweek when such work occurred. Moreover, any worker who performed work closely related and directly essential (CRADE) to the covered activity would also be covered on an individual basis.
- Typical CRADE workers include janitors sweeping the floor in areas where goods are produced for interstate commerce; bookkeepers processing payroll for workers producing goods for interstate commerce; and material handlers, warehouse workers, and helpers who box, move, and load goods to be shipped in interstate commerce.
- If employees are engaged in both covered and non-covered work in the same workweek, they are covered for all hours worked in that workweek (see "workweek standard" in Regulations 29 CFR Part 776.4 and FOH 11a01).