@media only screen and (min-width: 0px){.agency-nav-container.nav-is-open {overflow-y: unset!important;}} Exempt employees must be paid on a salary basis and must have exempt job duties. This fact sheet provides general information on the exemption from minimum wage and overtime pay provided by Section 13(a)(1) of the FLSA as defined by Regulations, 29 C.F.R. Any exempt employee who currently earns a weekly salary that is less than $684 per week will be impacted by this new rule. Effective January 1, 2020, the New York threshold for executive and administrative exempts currently ranges from $885 to $1,125 per week ($46,020 annually to $58,500 annually) depending on siz… Employers must take care to ensure that employees designated as exempt salary are indeed performing exempt duties and are not misclassified. The regulation increases the EAP salary threshold under Pennsylvania law to: $684 per week ($35,568 annually) effective Oct. 3, 2020. However, the rule makes a number of other important changes . WHD will continue to enforce the 2004 part 541 regulations through December 31, 2019, including the $455 per week standard salary level and $100,000 annual compensation level for Highly Compensated Employees. .usa-footer .container {max-width:1440px!important;} The employee’s primary duty includes the exercise of discretion and independent judgment with respect to matters of significance. The employee’s primary duty must be making sales (as defined in the FLSA), or obtaining orders or contracts for services or for the use of facilities for which a consideration will be paid by the client or customer; and. See other fact sheets in this series for more information on the exemptions for executive, administrative, professional, computer and outside sales employees, and for more information on the salary basis requirement. An employer may provide an exempt employee with additional compensation without violating the salary basis requirement if the employment arrangement also includes a guarantee of at least the minimum required salary of $684 per week. For additional information, visit our Wage and Hour Division Website: http://www.wagehour.dol.gov and/or call our toll-free information and helpline, available 8 a.m. to 5 p.m. in your time zone, 1-866-4USWAGE (1-866-487-9243). Payment on a salary basis on its own does not render the employee exempt from the overtime requirements of the FLSA. The employee’s primary duty must be the performance of work requiring invention, imagination, originality or talent in a recognized field of artistic or creative endeavor. Although possible, it appears unlikely this rule will be blocked by Congressional action or by litigation (although litigation by worker advocates has been threatened). All employees are eligible for overtime pay unless they meet all three of these criteria: They are salaried, not hourly, employees. To pay a non-exempt employee a salary, the employer pays the employee the fixed amount per week and pays overtime at a rate of 1.5x the employee’s regular rate. The final rule includes a provision allowing employers to use nondiscretionary bonuses and incentive payments (including commissions) that are paid annually to satisfy up to 10% of the standard salary threshold. Their salary is greater than $684 per week or $35,568 per year. Employers should also be aware that some state minimum wage laws lack an FLSA-identical HCE exemption; so, as a practical effect, the HCE exemption may be unavailable in certain state. Check out what FLSA laws say about exempt employees and what you can require of them. ALL RIGHTS RESERVED. .manual-search ul.usa-list li {max-width:100%;} The .gov means it’s official. exempt employee salary deductions The Fair Labor Standards Act (FLSA) requires that most covered employees receive overtime pay at time and one-half their regular rate of pay for all hours worked in excess of 40 per week. The FLSA's minimum salary requirement is set to remain the same in 2021. To be considered "exempt," these employees must generally satisfy three tests: Salary-level test. This publication is for general information and is not to be considered in the same light as official statements of position contained in the regulations. Effective January 1, 2020, the California threshold for employers of 26 or more employees will increase to $54,080 per year (or $1,040 per week). Police, Fire Fighters, Paramedics & Other First Responders. The final rule is available at: https://www.federalregister.gov/documents/2019/09/27/2019-20353/defining-and-delimiting-the-exemptions-for-executive-administrative-professional-outside-sales-and. .manual-search-block #edit-actions--2 {order:2;} The United States Department of Labor has provided guidelines for exemption in the FLSA Regulations. The employee must have the authority to hire or fire other employees, or the employee’s suggestions and recommendations as to the hiring, firing, advancement, promotion or any other change of status of other employees must be given particular weight. Components of the New FLSA Salary Level Rule In announcing the new rule, the DOL noted the following key components: $780 per … Attorney Advertising. Consequently, employers currently paying EAP-exempt employees less than $35,568 per year need to increase their salary levels or convert positions to non-exempt status for 2020. .cd-main-content p, blockquote {margin-bottom:1em;} /*-->*/. 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