Edit/ as of 12/12/16, this rulling is currently on hold.
Are you (and your company) aware of recent legislation which may influence your exempt status?
Earlier this month, the Department of Labor (DOL) updated it’s rulings on salary levels for certain job roles that can be considered exempt under Fair Labor Standards Act (FLSA) for the first time since 2004.
FLSA requires that in addition to paying at least the minimum wage, employers also must pay overtime to employees who work more than 40 hours in a given workweek, unless they meet certain exceptions to be considered exempt.
Basic Requirements for an Exempt Employee
|How much are you paid?||How are you paid?||“Standard Duties Test”|
|Present||$23,660 or more||Must be Salaried
(not based on quality or quantity (hourly) of work)
|You primary job duty must involve the kind of work associated with exempt executive, administrative, or professional employees|
|December 1, 2016 – 2020||$47,476 or more*|
|2020||Requirements for exemption classification will now be reviewed every three years.|
* Up to 10% of this can be in quarterly bonuses or similar.
If you do not currently meet the new salary threshold (say, you make $40,000, but are currently considered exempt), your company may need to change this status and you may be eligible for overtime pay.
Does receiving a particular salary, alone, indicate that I am exempt?
Does my job title determine my exempt status under the FLSA?
I’m paid a salary, am I still eligible for overtime?
I’m salaried, currently considered exempt, and make under $47,476. In December, will my company have to start paying me overtime or move me to non-exempt?
Possibly. Look in to it to make sure your employer is aware of the new legislation!
Disclaimer: This information is merely a summary of the new regulations and should not be taken as legal advice.