An FLSA provision allowing agricultural employers with fewer than 500 man-days of agricultural labor in any calendar quarter of the prior year to pay farm workers without overtime, and exempting certain family members entirely.
Why the agricultural overtime exemption matters for employers
Agriculture is one of the few industries the FLSA treats fundamentally differently for overtime purposes. Most employers must pay time-and-a-half for hours over 40 in a workweek. Agricultural employers may be exempt from that requirement if they meet the 500 man-day test. A man-day is any day where an employee performs agricultural work for at least one hour. If the employer used fewer than 500 man-days of agricultural labor in any calendar quarter of the preceding calendar year, they are not required to pay overtime to agricultural workers in the current year. The exemption also completely exempts immediate family members of the farm owner regardless of hours or wages. Piece-rate workers who commute daily from their permanent residence and are primarily employed in agriculture in the region are also exempt from overtime under a separate provision. Note that even exempt agricultural employers must still comply with the federal minimum wage of $7.25 per hour, and many states have higher agricultural minimum wages or provide fewer exemptions than federal law. California, for example, has largely eliminated the agricultural overtime exemption for larger farm operations. Employers with H-2A visa workers have additional compliance obligations related to the adverse effect wage rate and housing requirements. The exemption applies only to agriculture as defined under FLSA Section 3(f), which includes farming, horticulture, and related activities performed on a farm as an incident to or in conjunction with farming operations.
How BEG handles Agricultural Overtime Exemption for clients
BEG Managed Payroll configures agricultural payroll correctly whether your operation falls under the exemption or is subject to full FLSA overtime requirements. State agricultural wage rules are complex and vary significantly, and BEG tracks those requirements at the state level. BEG handles agricultural payroll at $25-$45 per employee per month. Learn about BEG Managed Payroll.
Frequently asked questions
What is a man-day under the agricultural exemption?
A man-day is any day during which an employee performs agricultural work for at least one hour. Employers count total man-days in each calendar quarter of the prior year to determine whether the 500-day threshold was crossed.
Do agricultural workers still earn the federal minimum wage?
Yes. The agricultural overtime exemption removes the overtime requirement but not the minimum wage requirement. Agricultural workers must be paid at least $7.25 per hour under federal law, and many states require higher rates.
Does the exemption apply to farmworkers who process crops?
It depends on where processing occurs and whether it is incidental to the farming operation. Processing that occurs on a farm as part of the farming operation generally qualifies. Processing at a separate facility typically does not qualify as agriculture under FLSA.
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About the author
Anthony Moretti is VP of Sales at Business Executive Group, where he builds BEG's managed payroll and HR service verticals for employers across Dallas-Fort Worth and nationwide. He writes the BEG Payroll Glossary to give employers plain-English answers on payroll and compliance.
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