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Are you Preparing for the New FLSA White Collar Exemption Rules?

In May of this year, the Department of Labor (DOL) released their much anticipated rules on the minimum salary level for white collar exemptions to the overtime rules.  This new rule, effective Dec 1st of this year, more than doubled the current minimum salary amount from $455 per week ($23,600 annually) to $913 per week ($47,476 annually).

This means that an employee in a position you consider to be exempt from overtime must meet this new minimum salary amount as well as meet the current exemption tests for an exemption. The exemption sometimes referred to as the “duties” tests) did not change from previous versions, but it is important to note that in order for an employee to be exempt from overtime, they must meet BOTH the minimum salary level and one of the duties tests.

With the new minimum salary going into effect December 1st, many employers have been reviewing their current exempt positions to insure they are in compliance with the duties tests as well as making decisions on whether to increase a salary, or make a change from exempt to non-exempt.

Some steps you can take now are:

  • Review employees in your organization considered exempt that are close to the new minimum salary.
  • Analyze if changing to a non-exempt position is a reasonable step. This may include looking at their current salary and their current work hours to determine if overtime is a key factor in your decision.
  • Review the “duties” tests. What an employee is actually doing in their job may have changed from when they were first determined to be exempt. Remember, it is not the title of their job; it is the duties of their job which determine if they meet an exemption test.
  • For further information please visit the DOL Overtime Page