Simple English definitions for legal terms
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Common Business Purpose: When two or more businesses work together on a related activity, it is called a common business purpose. If one of the businesses is subject to the Fair Labor Standards Act, then any other business that shares this purpose will also be subject to it.
Common business purpose refers to related activities carried out by two or more associated businesses. If one of the businesses falls under the jurisdiction of the Fair Labor Standards Act, then another business that shares a common business purpose will also be subject to the same regulations.
These examples illustrate how businesses that are associated with each other and have similar goals and operations can be considered to have a common business purpose. This means that they may be subject to the same regulations and laws, such as those related to labor standards and employment practices.