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Federal Workplace Law

What does the undue hardship exemption mean for employees?

Employers with fewer than 50 employees are not subject to the Fair Labor Standards Act (FLSA) break time requirement for covered, nonexempt employees if compliance with the provision would impose an undue hardship. Whether compliance would be an undue hardship is determined by looking at the difficulty or expense of compliance for a specific employer in comparison to the size, financial resources, nature, and structure of the employer's business. All employers who work for the covered employer, regardless of work site, are counted when determining whether this exemption may apply.

Because there are examples of innovative, inexpensive solutions for every industry, earning an undue hardship exemption may be challenging for businesses. There are no exemptions for employers with more than 50 employees.

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