New DOL Ruling Increases the Salary Threshold for Exempt Employees

club-2492011_1920This morning the Department of Labor (DOL) announced the new salary threshold for exempt employees. Currently employees who meet certain job duties tests and are paid on a salary basis equal to at least $455 per week can be considered exempt from overtime. The new ruling increases the salary threshold from $455 per week to $684 per week. This new threshold is effective January 1, 2020.

The new threshold means that employers who have exempt employees making less than $684 need to either reclassify the employees as non-exempt (making them eligible for overtime pay when working more than 40 hours in a workweek ) or need to increase wages to be above the weekly minimum. Continue reading

Can Employees Be Paid Salary to Avoid Paid Overtime? Understanding the FLSA Exemptions

usdol_seal_circa_2015_svgCan Employees Be Paid Salary to Avoid Paying Overtime?

This is a common question employers have – and not understanding the rules regarding exempt and non-exempt status, established by the federal Fair Labor Standards Act (FLSA), can land employers in hot water if employees are misclassified.

With the impending changes to the minimum salary threshold for exempt employees (Read more about that here!), this is a great opportunity for employers to review all current exempt and salary employees to make sure they are properly classified.

Continue reading

New Proposed Overtime Rule Released by the Department of Labor

clock-334117_1280The Wage and Hour Division of the Department of Labor (DOL) has recently released proposed changes to the salary threshold for overtime exemption.  Under the current Fair Labor Standards Act (FLSA), in order for an employee to be considered “exempt” (meaning they are not required to be paid overtime for working more than 40 hours per week) the employee must be paid a salary of at least $455 per week.  The new proposed rule would increase this salary figure to approximately $970 per week, or $50,440 per year. The new figure was set at the 40th percentile of current exempt salary employees.  The proposed rule also states that the salary threshold would be adjusted annually based on the 40th percentile of wages paid each year.

Continue reading