Teaching positions are exempt under a different FLSA provision and are not subject to the salary threshold. .manual-search ul.usa-list li {max-width:100%;} part 541 with an effective date of January 1, 2020. These requirements are outlined in the FLSA Regulations (promulgated by the U.S. Department of Labor). $780 per … .table thead th {background-color:#f1f1f1;color:#222;} Payment on a salary basis on its own does not render the employee exempt from the overtime requirements of the FLSA. The FLSA does allow employers to reduce the salary of a non-exempt employee for missed work time. Prior results do not guarantee a similar outcome. *Note: The Department of Labor revised the regulations located at 29 C.F.R. The regular rate in this method is determined by dividing the salary by the number of hours the salary is intended to compensate. The following is an example from the regulations: .agency-blurb-container .agency_blurb.background--light { padding: 0; } Overtime pay at a rate not less than one and one-half times the regular rate of pay is required after 40 hours of work in a workweek. .cd-main-content p, blockquote {margin-bottom:1em;} The United States Department of Labor has provided guidelines for exemption in the FLSA Regulations. p.usa-alert__text {margin-bottom:0!important;} .h1 {font-family:'Merriweather';font-weight:700;} The new salary rule adjusts the minimum salary for an exempt employee from $466 per week to $684 per week. To be exempt, an employee usually has to make at least $455 per week (or $23,600 a year), be salaried, and be assigned exempt job responsibilities. Washington, DC 20210 Covered nonexempt workers are entitled to a minimum wage of not less than $7.25 per hour effective July 24, 2009. FLSA Minimum Wage: The federal minimum wage is $7.25 per hour effective July 24, 2009. Section 13(a)(1) and Section 13(a)(17) also exempt certain computer employees. 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. With few exceptions, to be exempt an employee must (a) be paid at least $23,600 per year ($455 per week), and (b) be paid on a salary basis, and also (c) perform exempt job duties. #block-googletagmanagerfooter .field { padding-bottom:0 !important; } 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. While collective bargaining agreements cannot waive or reduce FLSA protections, nothing in the FLSA or the Part 541 regulation relieves employers from their contractual obligations under such bargaining agreements. The new minimum threshold to be categorized as exempt (if the duties test is also met) is $684/week or $35,568 per year. The .gov means it’s official. ol{list-style-type: decimal;} 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. Attorney Advertising. .manual-search-block #edit-actions--2 {order:2;} 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. div#block-eoguidanceviewheader .dol-alerts p {padding: 0;margin: 0;} 1-866-487-9243, Administrator Interpretations, Opinion and Ruling Letters, Resources for State and Local Governments, Fact Sheet #17A: Exemption for Executive, Administrative, Professional, Computer & Outside Sales Employees Under the Fair Labor Standards Act (FLSA), https://www.federalregister.gov/documents/2019/09/27/2019-20353/defining-and-delimiting-the-exemptions-for-executive-administrative-professional-outside-sales-and, Severe Storm and Flood Recovery Assistance. 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. Exemption requires that both the salary and the duties tests be met. To be considered "exempt," these employees must generally satisfy three tests: Salary-level test. However, the rule makes a number of other important changes . [CDATA[/* >