Defining ‘Employ’ Under the FLSA: Suffer or Permit to Work

Under the Fair Labor Standards Act, to “suffer or permit to work” means to allow work to happen, and it is the standard that decides when an employer owes wages. The definition comes from 29 U.S.C. § 203(g), which says “employ” includes “to suffer or permit to work.”1Office of the Law Revision Counsel. 29 USC 203 – Definitions That phrasing is deliberately broad. It reaches beyond signed contracts, formal job titles, and explicit assignments. If a business lets useful work happen and knows or should know about it, the person doing that work is an employee entitled to minimum wage and, where applicable, overtime.

The Two Words Do Different Work

“Permit” is the easier half. It captures active authorization: a manager tells someone to handle a task, approves a shift, or signs off on a project. “Suffer” is the harder half, and it is where most disputes start. To suffer work is to allow it to happen without stopping it, even passively. A supervisor who watches an employee keep typing after clocking out has suffered that work to occur. Nothing more is needed.

Together, the two words push the analysis away from paperwork and toward what actually happened. A business that benefits from someone’s labor has “employed” that person under the FLSA whether or not there was an offer letter, a purchase order, or a handshake. Calling a worker a “volunteer” or slapping “independent contractor” on the invoice does not change the underlying fact that work was suffered or permitted.

The FLSA’s definition of “employer” is written just as broadly. Under 29 U.S.C. § 203(d), an employer includes any person acting directly or indirectly in the interest of an employer in relation to an employee.2Office of the Law Revision Counsel. 29 US Code 203 – Definitions That reach means individual managers and supervisors can be personally liable for wage violations, not only the company itself.

When the Duty to Pay Kicks In

The obligation attaches the moment the employer knows, or should know, that work is being performed. Actual knowledge is simple: a manager sees an employee answering customer emails after their shift, so the employer knows. Constructive knowledge is where employers get caught. If ordinary supervision would have revealed the work, the law treats the employer as if it knew.3U.S. Department of Labor. Fact Sheet 22 – Hours Worked Under the Fair Labor Standards Act

The test is not whether management asked for the work. It is whether management had a reasonable opportunity to discover it and decided, actively or passively, to let it continue. An employee who stays half an hour late every evening while the supervisor walks past their desk has been suffered to work that extra time. The company has to pay for it.

Unauthorized Work Is Still Paid Work

This is where most employers stumble. Work that was explicitly forbidden is still compensable if the employer knows or has reason to believe it happened. A written “no unapproved overtime” policy does not eliminate the duty to pay for overtime that actually occurs.3U.S. Department of Labor. Fact Sheet 22 – Hours Worked Under the Fair Labor Standards Act

The statute puts the burden on management to actively prevent unwanted work, not merely to prohibit it on paper. If an employee keeps logging in after hours despite the policy, the employer has to do something concrete: cut off system access, issue discipline, reassign the work. Accepting the benefit of the labor while refusing to pay for it is not a choice the FLSA allows.

An employee who offers to work extra hours for free is still owed wages for that time. Informal agreements to work off the clock are unenforceable, because the protections of the FLSA cannot be waived by the employee.3U.S. Department of Labor. Fact Sheet 22 – Hours Worked Under the Fair Labor Standards Act

Employers do keep the right to discipline employees for breaking work rules, including unauthorized overtime. The proper sequence is to pay for the time first, then handle the policy violation through normal discipline. You can write someone up, or even fire them, for ignoring a no-overtime rule. You cannot withhold the pay.

Remote and Hybrid Work

Tracking hours gets harder when employees work outside the office. The Department of Labor addressed this in Field Assistance Bulletin 2020-5, which remains the key guidance. An employer generally satisfies its obligation by providing a reasonable process for employees to report all hours worked. If a worker fails to use that process, the employer is not expected to comb through device logs or email timestamps to reconstruct unreported time.4U.S. Department of Labor. Field Assistance Bulletin No. 2020-5

There is a serious catch. The reporting system only counts as reasonable diligence if the employer does not discourage or impede accurate reporting. A policy telling workers to log every hour, paired with a culture that punishes anyone who reports overtime, wipes out the safe harbor. And any hours that are reported must be paid, whether or not the work was requested.4U.S. Department of Labor. Field Assistance Bulletin No. 2020-5

When Unpaid Work Is Allowed

The breadth of “suffer or permit” raises an obvious question: can anyone lawfully work for free? In the for-profit private sector, essentially not. Employees may not volunteer services to a for-profit employer.5U.S. Department of Labor. FLSA Coverage and Employment Status Advisor – Volunteers True volunteering is confined to religious, charitable, civic, and similar nonprofit purposes.

Unpaid interns at for-profit companies sit in a narrow, heavily litigated space. Courts apply the “primary beneficiary test,” weighing seven factors to determine who gets the greater benefit from the arrangement:

  • Whether both sides clearly understand there is no expectation of pay
  • Whether the internship provides training similar to an educational environment
  • Whether it is tied to a formal education program through coursework or academic credit
  • Whether the schedule accommodates the intern’s academic calendar
  • Whether the duration is limited to the period of genuine learning
  • Whether the intern’s work complements, rather than displaces, paid employees
  • Whether both sides understand no paid job is promised at the end

No single factor decides the question. But when an intern is doing the same work as a paid employee, with little educational content and most of the benefit flowing to the company, the intern is an employee and has to be paid.6U.S. Department of Labor. Fact Sheet 71 – Internship Programs Under the Fair Labor Standards Act

What Getting It Wrong Costs

Failing to pay for time that was suffered or permitted carries stacking consequences. Any successful FLSA claim recovers:

  • Unpaid minimum wages or overtime, in full
  • Liquidated damages equal to the unpaid wages, effectively doubling the amount, unless the employer proves the violation was made in good faith
  • The worker’s attorney fees and court costs

Those are baseline remedies.7Office of the Law Revision Counsel. 29 USC 216 – Penalties For repeat or willful violations, the government can also impose civil money penalties of up to $2,515 per violation under the most recent inflation adjustment.8U.S. Department of Labor. Civil Money Penalty Inflation Adjustments Willful violations can also draw criminal prosecution, with fines up to $10,000 and up to six months in prison for a second conviction.

The look-back period matters too. Under 29 U.S.C. § 255, workers generally have two years from the date of the violation to recover unpaid wages, and three years if the violation was willful.9Office of the Law Revision Counsel. 29 US Code 255 – Statute of Limitations A willful violation means the employer either knew its conduct broke the FLSA or acted with reckless disregard for whether it did. That extra year, combined with doubled damages, can turn a modest dispute into a large one.

Keep the Records

Because the standard turns on what actually happened, employers need records showing it. Federal regulations require every non-exempt employee’s daily and weekly hours to be tracked.10eCFR. 29 CFR Part 516 – Records to Be Kept by Employers Workers on fixed schedules can be recorded by their regular schedule with deviations noted, but the obligation to have a record of the work does not go away.

Gaps hurt the employer, not the worker. When timekeeping records are missing or incomplete, courts will accept a worker’s reasonable estimate of the hours. Reliable time tracking is the primary defense against a claim that work was suffered or permitted without pay.