If your federal or state labor law posters haven't been updated recently, you may be out of compliance. While the act does not require any particular format for these records, a specific set of information is required to be kept recorded. .manual-search ul.usa-list li {max-width:100%;} As a general rule, the FLSA sets 14 years old as the minimum age for employment and limits the number of hours worked by minors under the age of 16. Check out our about us page, read our blog, learn more about career opportunities, visit our press page, or read more about our coronavirus data. In many cases, the state criteria are harder to meet than the federal criteria. As a result, the minimum salary required for the executive, administrative, and professional exemptions from overtime under state law increases to $1,014.30 per week on January 1, 2022. Be clear that these changes are based on new government rules. Shelby A. Hicks-Merinar is an attorney with Steptoe & Johnson PLLC in Morgantown, West Virginia. temp_style.textContent = '.ms-rtestate-field > p:first-child.is-empty.d-none, .ms-rtestate-field > .fltter .is-empty.d-none, .ZWSC-cleaned.is-empty.d-none {display:block !important;}'; To determine whether the fee payment meets the minimum salary level requirement, the test is to consider the time worked on the job and determine whether the payment is at a rate that would amount to at least $684* per week if the employee worked 40 hours. Homebase gives you modern tools and guidance to keep you compliant. Whenever employers wrongfully misclassify an employee as exempt, they may be held liable for all unpaid overtime owed to the individual as far back as three years prior to the claim. Find the latest news and members-only resources that can help employers navigate in an uncertain economy. As a result, employers with 26 or more employees must The Obama administration sought to automatically adjust the threshold every three years to represent the 40th percentile of earnings for full-time salaried workers in the lowest-wage census region. Or, if they are then receiving overtime pay, it may not matter. It is very important that employers everywhere familiarize themselves with the FLSA as well as the other federal labor laws that apply to their business such as equal opportunity employment laws, or the Family and Medical Leave Act. 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. This fact sheet provides general information concerning the application of the overtime pay provisions of the FLSA . 1. Employers then will have to "decide whether to reclassify employees or raise their salaries.". Currently, the salary threshold for the professional exemptions is $684 per week, which equates to $35,578 per year. Remember:This is not legal advice. Virtual & Washington, DC | February 26-28, 2023. [Visit SHRM's resource page on Raise their salary to fall under the minimum requirement. Company Wants FLSA Class Action Dismissed Due To Plaintiffs Improper Actions Regarding Notice To Opt-Ins, The Quagmire Of The Administrative Exemption: The Saga Of White Collar Production Workers. .usa-footer .grid-container {padding-left: 30px!important;} Romn D. Hernndez, an attorney with Troutman Sanders in Portland, Ore., said employers should forecast financial ramifications for changes in labor costs necessitated by changes in the rules. Need help with overtime policies and other business-related concerns? The newrule is expected to prompt employers to reclassify more than a million currently exempt workers to nonexempt status and raise pay for others above the new threshold. This is an $11,908 jump from the old minimum, which was set in 2004. In 2021, the salary threshold for overtime was $684 a week, or $35,568 per year. var temp_style = document.createElement('style'); However, Section 13(a)(1) of the FLSA provides an exemption from both minimum wage and overtime pay for employees employed as bona fide executive, administrative, professional and outside sales employees. Weve been serving clients for more than a century, and weve been climbing the ranks of the nations largest firms for many years, according to both The Am Law 100 and The National Law Journal. Minimum salary threshold for exempt executive, administrative, and professional employees (also called "white-collar" employees) = $684 per week ($35,568 per year) The minimum salary threshold could be increased to $47,476 per year, or even as high as $62,000 to over $80,000 per year Want to learn more about Homebase? document.head.append(temp_style); You may be trying to access this site from a secured browser on the server. var currentUrl = window.location.href.toLowerCase(); Choose from more than 150 sizes and divider configurations in the DURABOX range. The new rate will When a state law sets its minimum wage higher than the federal, the state wage applies. The division held multiple stakeholder listening sessions in 2022, and DOL continues working toward this proposal.. Revisiting your timekeeping policy to ensure accurate records is a good idea if you plan on reclassifying employees. Employers should evaluate their systems for time-keeping, tracking overtime and paying bonuses, Hernndez said. over the applicable FLSA overtime threshold in the applicable FLSA work period. The Minnesota Fair Labor Standards Act @media (max-width: 992px){.usa-js-mobile-nav--active, .usa-mobile_nav-active {overflow: auto!important;}} DURABOX double lined solid fibreboard will protect your goods from dust, humidity and corrosion. There are issues with conversion, the most difficult of which may be the psychological effect of conversion and the switch from white collar to blue collar. Federal law considers overtime legal and all employees non-exempt from overtime pay unless they meet certain requirements. Doing so, or adopting any major increase, will face challenges similar to those raised in 2016that is, that a change significantly causing many to lose their exempt status is neither rational nor consistent with the statute.". This means that while you must pay the employee at least 90% of the minimum salary throughout the year, (including nondiscretionary bonuses, incentive payments, and commissions), you have one pay period after the year to compensate the employee for any shortfalls that would classify them as non-exempt. If state law and the FLSA overlap, the law which is more protective of the minor will apply. Note: In Colorado, an exempt employee's salary generally must also be sufficient to satisfy the minimum wage for all hours worked in a workweek. Brown noted that taking some initial steps sooner rather than later can go a long way toward triaging potential issues and creating a smoother transition plan. While often regarded as the most important factor determining an employees exempt or nonexempt status, the individuals salary is still only one piece of the puzzle that employers need to consider. Homebase makes managing hourly work easier for over 100,000 local businesses. Fixed Sum for Varying Amounts of Overtime: A lump sum paid for work performed during overtime hours without regard to the number of overtime hours worked does not qualify as an overtime premium even though the amount of money paid is equal to or greater than the sum owed on a per-hour basis. .manual-search ul.usa-list li {max-width:100%;} The duties tests denote which employees are exemptnot eligible for overtime payand they depend on a variety of factors. Generally, the definition of hours worked includes all the time during which an employee is required to be on the employers premises, on duty, or at a prescribed workplace. Homebase works great for all hourly teams, including restaurants, retail, healthcare, home and repair, and professional services businesses. [CDATA[/* >