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
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.
5 Signs It's Time to Vote Off a Board Member
BoardYou, and probably the rest of the board, is thinking the same thing: Is it time to vote them off?

Most Popular
6 Steps To Create An HOA Board Resolution
BodsmCreate, write and approve a new HOA board resolution using these six steps
Extended Car Warranty: Do You Really Need It?
ExtcarsmWhen thinking of whether or not to purchase an extended car warranty, there are a number of factors to take into consideration.
Have phone, will travel: Travel apps for your next vacation
SmartphonesmTravel applications for your smartphone can help you get the most out of your next vacation or trip
What are the FHA Loan Requirements?
FhaThe FHA makes it easy to secure a home loan. The FHA Loan Requirements are described in detail in this article.


Zip Code Profiler

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

Instant Home Value!