Under the FLSA enterprise coverage test, hospitals and nursing homes are only covered if their annual charges for services are at least $500,000.

Question

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Under the Fair Labor Standards Act (FLSA), hospitals and institutions primarily engaged in the care of the sick, the aged, or the mentally ill are covered by the FLSA regardless of their annual dollar volume of business. This means that the FLSA's protections apply to employees of such institutions without regard to how much money the institution earns or charges for its services.

Under the FLSA Enterprise Coverage Test, Hospitals and Nursing Homes