Getting Paid Fairly as a Homeworker Under the Fair Labor Standards Act

Remote work has become the new normal, but when it comes to labor rights, where you work doesn’t change the rules. If you’re sewing garments, assembling jewelry, doing embroidery, or performing other piecework from home, the Fair Labor Standards Act (FLSA) classifies you as a homeworker, and specific protections apply.

Just because you're working at your kitchen table instead of a factory doesn't mean you lose your rights. As a homeworker, you're still entitled to:

• Minimum wage
• Overtime pay (for hours over 40 in a workweek)
• Proper recordkeeping of your hours and earnings

These rights apply regardless of how your employer structures your pay, whether you are paid hourly, by the piece, or on a project basis.

What Is “Industrial Homework”?

Under the FLSA, industrial homework refers to making or assembling goods for an employer from your home. It doesn't matter whether you live in a house, apartment, room in a residential establishment, or tenement — the location has no impact on your legal rights.

If someone is paying you to create, assemble, or manufacture products, you are likely considered a homeworker under the law.

Common examples of industrial homework include:

• Stitching clothing
• Assembling jewelry pieces
• Knitting garments or outerwear
• Making handkerchiefs
• Attaching buttons, buckles, or decorative embroidery

Even if you’re using your own tools or materials, you may still be classified as a covered employee, not an independent contractor, if you’re performing work for someone else’s business.

Who’s Covered by the FLSA?

Most homeworkers are covered under the Fair Labor Standards Act, and there are two main ways coverage applies:

• Enterprise coverage: Your employer meets the FLSA’s annual revenue threshold.
• Individual coverage: Your work involves the movement of materials or goods across state lines (even if you’re just assembling or handling them for out-of-state shipment and/or receipt of out-of-state materials or goods used in the production process).

Either way, even if you’re a single person doing piecework from home, you are likely protected by the FLSA’s wage and hour laws.

Do Homeworkers Need Special Certification?

In certain industries, yes — a special certification from the U.S. Department of Labor is required to perform industrial homework legally.

Certification is necessary if you’re working in industries such as:

• Women’s apparel
• Jewelry manufacturing
• Knitted outerwear
• Glove and mitten production
• Button and buckle assembly
• Handkerchief making
• Embroideries

In these fields, either you (the homeworker) or your employer must obtain a Department of Labor (DOL) homework certificate, which must be renewed every two years.

Important:

• For women’s apparel and certain hazardous jewelry work, only individual workers can be certified.
• Employers cannot apply for certification on your behalf in those industries.

If you're doing homework outside of these specific industries, certification usually isn’t required, but the FLSA’s minimum wage, overtime, and recordkeeping rules still apply.

Your Wage Rights As a Homeworker

No matter how you’re paid — by the hour, by the piece, or on commission — you are still entitled to at least the federal minimum wage under the FLSA.

In addition:

• If you work more than 40 hours in a week, you must be paid time-and-a-half — that’s 1.5 times your regular rate — for every overtime hour.
• Even if you’re paid per piece, your employer must calculate your effective hourly rate to ensure your overtime pay is accurate.

Important:

Your employer cannot deduct the cost of tools, repairs, or supplies from your paycheck or require you to pay out of pocket for such things if doing so would:

• Drop your earnings below minimum wage, or
• Cut into your overtime compensation.

What Records Must Be Kept?

Employers are legally responsible for keeping accurate records for all homeworkers, including:

• Name, address, and Social Security number
• Birthdate (if under age 19)
• Hours worked each day and each week
• Rate of pay and the method of calculation
• Gross wages, overtime earned, deductions, and net pay
• Time spent on work-related travel, training, or preparation

If you are performing industrial homework, your employer must also maintain a special handbook issued by the U.S. Department of Labor.

This record must document:

• Your work hours
• Your pay details
• Any business-related expenses (like equipment or materials provided)

Bottom line: It’s your employer’s responsibility to maintain these records, not yours.

What About Clerical Work Done at Home?

If you’re a traditional office employee occasionally doing administrative tasks from home, like answering emails, processing paperwork, or scheduling, your employer does not need to follow the special industrial homework rules.

However, even for remote clerical work, employers must still:

• Accurately track your hours, and
• Pay you properly for all time worked, including overtime if applicable. 

Common Mistakes Employers Make with Homeworkers

Unfortunately, many employers misclassify homeworkers or fail to follow wage laws. Some of the most common violations include:

• Misclassifying homeworkers as independent contractors to avoid paying wages and benefits
• Failing to track hours or maintain the required Department of Labor handbook
• Paying piece rates that fall below the federal minimum wage
• Deducting or making the homeworker pay out-of-pocket costs for tools, supplies, or equipment in a way that undercuts minimum wages and/or overtime pay
• Skipping compensation for time spent on training, travel, or setup activities
• Failing to obtain the necessary certification for regulated industries like apparel or jewelry manufacturing

If any of these sound familiar, your employer could be violating federal labor laws — and you may have the right to take legal action to recover lost wages and other damages.

Need Help Recovering What You’re Owed?

If you believe your employer isn’t following the rules regarding how you should be paid, you may need someone with experience handling such cases to intervene. That’s where the army of employment lawyers at Morgan & Morgan comes in.

Please contact us today to get started with your free case review.  

This information is based on fact sheets provided by the DOL.