If you own and operate a business in the agricultural sector, it is crucial to stay informed about federal laws and regulations related to agricultural employment. This includes farmers, growers, farm labor contractors, and agricultural associations, among others. 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.

Fair Labor Standards Act (FLSA)

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, whether performed by farmers or on a farm.

The FLSA applies in the following circumstances:

• 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, the production of goods for commerce, or a closely related process or occupation essential to production.

Minimum Wage and Overtime

All employees subject to the FLSA must receive at least a minimum wage—$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, retail operations off the farm, or reforestation. Overtime must be paid when an employee performs work that is exempt AND work that is non-exempt in the same workweek. However, agricultural workers solely employed in agriculture are not entitled to overtime pay.

There are also several exemptions to the minimum wage requirement. You do not have to pay FLSA minimum wage if:

1. You (the employer) used no more than 500 man-days of agricultural labor in any calendar quarter in the preceding year; or
2. The worker is either the spouse, parent, child, brother, or sister of the owner; or
3. The worker is a local hand harvest worker paid a piece rate and worked fewer than 13 weeks last year.

FLSA Resources:

Fact Sheet #12: Agricultural Employment Under the FLSA

Fact Sheet #40: Federal Child Labor Laws in Farm Jobs

29 CFR Part 780: Exemptions Applicable to Agriculture, Processing of Agricultural Commodities, and Related Subjects under the FLSA

Migrant and Seasonal Agricultural Workers Protection Act (MSPA)

The MSPA protects migrants and seasonal agricultural workers by establishing employment standards. It requires workers to register and comply with federal, state, and local regulations. Every non-exempt farm labor contractor, agricultural employer, and agricultural association engaged in agricultural activities must adhere to the MSPA.

Employers are subject to the MSPA if they recruit, employ, solicit, hire, or transport migrant workers for compensation. Agricultural employers and associations are also subject to MSPA if they engage in these activities with migrant or seasonal workers. Housing providers for migrant workers may also be subject to MSPA.

If you’re subject to the MSPA, you need to apply for MSPA certificates of registration. The following form(s) should be completed and submitted:

WH-530 – Application for FLC Certificate of Registration: complete this form if you are a farm labor contractor, meaning that you are a person or business who furnishes, recruits, employs, solicits, hires, or transports migrant or seasonal agricultural workers for money or other benefits, and are not an agricultural employer, agricultural association, or employee of an agricultural employer or association.

WH-535 – Application for FLCE Certificate of Registration: complete this form if you are an employee of a registered farm labor contractor and seeking to perform farm labor contracting activities solely on behalf of your employer.

WH-540 – Application to Amend an FLC or FLCE Certificate of Registration: complete this form if you have an existing certificate of registration and are seeking to amend or need a duplicate of your WH-530 or WH-535.

MSPA Resources:

Application for a Farm Labor Contractor or Farm Labor Contractor Employee Certificate of Registration

MSPA Certificate Registration Frequently Asked Questions

Conclusion

If the FLSA and MSPA apply to you, it is important to ensure compliance by paying the minimum wage and overtime under the FLSA and submitting any required forms under the MSPA. NFIB’s Legal Center is here to help. If you have any questions about agricultural employment, please contact us at info@nfib.org.