Your HOA and the Fair Labor Standards Act


If your homeowners association has employees—even independent contractors—then it may need to comply with FLSA regulations.

Your homeowners association (HOA) is likely also an employer. Large associations may hire office assistants, grounds maintenance crews, janitorial staff, or an on-staff property manager. Even small associations likely have a cleaning staff. Your employees may be covered under the Fair Labor Standards Act (FLSA), so it’s important to understand your requirements as an employer.

What does the FLSA cover?

This federal act sets the national minimum wage, overtime pay, regular workweek hours, and recordkeeping and youth employment standards.

  • Minimum wage: The current national minimum wage is $7.25 per hour. If states have a higher minimum wage than the FLSA, employers must pay the higher wage.
  • Overtime pay: Nonexempt employees are eligible for overtime pay if they work over 40 hours per workweek. Overtime pay must be paid at no less than 1.5 times the regular pay rate.
  • Regular workweek hours: A standard workweek is considered to be 40 hours of work during any consecutive seven days.
  • Recordkeeping: Every employer affected by the FLSA must keep certain records for each nonexempt worker for at least three years, including the employee’s full name and social security number, full address, occupation, hours worked each day and workweek, and more. This provision also requires employers to display an official poster of the FLSA provisions. (You can obtain a poster free of charge by calling 866-487-9243.)
  • Youth employment: The FLSA sets standards around the types of jobs and hours young employees are allowed to work, depending on their age.

Who is protected under the FLSA?


The FLSA provides “enterprise” and “individual” coverage. Enterprise protection affects organizations with at least two employees and covers employees of federal, state and local agencies; companies or organizations with annual dollar volume of sales or receipts of at least $500,000; hospitals or institutions that provide medical or mental care for residents; and schools.

(Some employees may have other protections under the FLSA’s 1989 amendments for enterprise coverage if they are considered “grandfathered in.”) Individual coverage affects employees involved in interstate commerce or the production of goods for interstate commerce, construction activities or domestic services.

Also, classifying an employee as an independent contractor may not protect your HOA from employment-related claims. If you are not sure your employees are covered by the FLSA, you can view this Department of Labor questionnaire.

What must you do as an HOA and an employer?

First, understand whether your HOA is affected by the FLSA by talking with a labor and employment attorney from your state. If it is, the next step is to ensure your HOA is in compliance with all regulations.

You can find full details of the FLSA on the Department of Labor’s website.

This article contains general information. Please consult your attorney before utilizing any of the information contained in this article.

Related Articles

Source: U.S. Department of Labor
Search All Articles
Related Articles
How to Prevent House Fires
05fire-jumboThere are several things you can do to prepare and prevent disaster from striking your home.
5 Things to do if your House is Still on the Market
House-for-saleThere is a wide array of reasons why your house might not have sold yet, not all of which are in your control.
Things to do Before Buying a House
NewhomeBuying a house is only the first of many new adventures.
5 Things The Pros Do Before Every Board Meeting
Board-meeting Preparation not only enables you to participate more thoroughly, but you also appear more professional and reliable.

Most Popular
Alabama - The Heart of Dixie
AlabamathumbAlabama has been at the center of many American battles--between white settlers and Native Americans, and in the Civil War.
USDA Rural Housing Repair and Rehab Loans
Newrdlogo_thLoans and grants available for low income families to repair or rehabilitate their homes.
Health Care Reform - How Much Will It Cost and Who Will Pay?
Stethoscopepig120Reforming and running the nation's health care system may cost a trillion dollars. So, who's going to pay?
Grand Canyon National Park
T505thumbA powerful and inspiring landscape, the Grand Canyon overwhelms our senses through its immense size;


Zip Code Profiler

Neighborhoods, Home Values, Schools, City & State Data, Sex Offender Lists, more.

Instant Home Value!