Cottage Industry Regulation

If you have a home-based business, there are federal laws that regulate the type of work that can be performed there. For example, the Department of Labor, under the Fair Labor Standards Act, can restrict work done at home in order to enforce the minimum wage laws.

Employees producing certain types of goods are protected from minimum wage violations by federal regulation. Violations of this regulation can result in civil and criminal penalties as well as being forced to shut down the home workplace.

State law also may restrict the hiring of employees and outside contractors if they work out of their homes. You can check with your state's Department of Labor to see if there are any rules relating to this issue in your state.

Related Resources

Zoning Regulations

Legal Restrictions on Home Offices

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