Key Point 8-08.01. The Fair Labor Standards Act mandates that employers pay the minimum wage, and overtime compensation, to employees who work for an enterprise engaged in commerce. There is no exception for religious organizations, but there are exceptions for certain classifications of employees.
The Act defines an enterprise as "the related activities performed … by any person or persons for a common business purpose." The United States Supreme Court has noted that this definition excludes most religious and charitable organizations to the extent that they are not operating for profit and are not pursuing a "business purpose." Tony & Susan Alamo Foundation v. Secretary of Labor, 471 U.S. 290 (1985).On the other hand, religious and charitable organizations will be deemed to be an "enterprise" subject to the minimum wage and overtime compensation ...
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