Real Estate and Rental Agencies


Real Estate and Rental Agencies Under the Fair Labor Standards Act (FLSA)

A real estate/rental agency is one which represents both in-state and out-of-state clients in negotiating the purchase or sale of property within the State in which the broker is located, or negotiates for the purchase or sale of property in other states, or collects or remits rents or other monies for property owners.

Requirements

The FLSA requires the payment of the Federal Minimum Wage to covered non-exempt employees and overtime pay at a rate of not less than one and one-half times the regular rate of pay after 40 hours of work in a workweek. Wages required by FLSA are due on the regular payday for each pay period. Employers are required to keep records containing information specified in the regulations (29 CFR Part 516).

Exemptions from various provisions of the FLSA are provided for employees who meet certain requirements. Among the employees who may be exempt from minimum wage and overtime pay are executive, administrative, professional and outside sales employees. Each of these categories of employee must meet specified requirements before the exemption may be applied.

Typical Problems

Some problems and misconceptions which Wage and Hour investigations commonly find in this type of business are:
(1) Employees being charged for meals, lodging, and other facilities which are actually    furnished for the benefit of the employer.

(2) Employees being charged full retail cost for facilities furnished for their benefit. They may only be charged actual cost.

 


Yezbak Law Offices • Nashville, Tennessee 37215 • 615-250-2000 • 866-255-3866