If you own and operate a business in the agricultural sector, it is important to stay informed about federal laws and regulations related to agricultural employment. This includes farmers, growers, farm labor contractors, and agricultural associations. The Fair Labor Standards Act (FLSA) and Migrant and Seasonal Agricultural Workers Protection Act (MSPA) each present requirements with which small agricultural businesses must comply.
The FLSA contains the standards for minimum wage, overtime pay, recordkeeping, and child labor. Under the FLSA, agricultural employment includes all farming activities such as planting, cultivating, harvesting, dairying, and related processes. It covers any practices directly related to farming operations.
For businesses: A business is subject to the FLSA if it has at least two employees engaged in interstate commerce or at least $500,000 in gross sales. All employees are entitled to FLSA protections if a business is covered.
For individuals: Individuals are subject to the FLSA even if a business is not covered when an employee engages in interstate commerce or closely related processes essential to production.
All employees subject to the FLSA must receive at least a minimum wage of $7.25 USD per hour regardless of payment method. Overtime—time and a half after 40 hours—must be paid in certain industries such as packing or processing plants where goods are processed for more than one farmer or retail operations off the farm. However, agricultural workers solely employed in agriculture are not entitled to overtime pay.
There are several exemptions from the minimum wage requirement: If you used no more than 500 man-days of agricultural labor in any calendar quarter last year; if the worker is either your spouse, parent, child, brother or sister; or if they are a local hand harvest worker paid a piece rate who worked fewer than 13 weeks last year.
The MSPA protects migrants and seasonal agricultural workers by establishing employment standards. It requires workers to register and comply with federal regulations. Every non-exempt farm labor contractor engaged in these activities must adhere to MSPA rules.
Employers recruiting migrant workers for compensation fall under MSPA jurisdiction. Housing providers for migrant workers may also be subject.
If you're subject to MSPA requirements you need certificates of registration through forms WH-530 for contractors or WH-535 for employees performing contracting activities on behalf of their employer.
If both acts apply ensure compliance by paying wages under FLSA guidelines while submitting necessary forms according under MSPAs directives "NFIB’s Legal Center is here help" should questions arise regarding "agricultural employment."
