The list of fact sheets below will update as you type in your keyword. if (target.indexOf('expanded') >= 0) { Some examples of job duties that fall under this exemption include accounting, quality control, and marketing. Employers with 26 or more employees: $62,400 per year. The proposed salary increase was enjoined by a U.S. District Court judge. The employees primary duty includes the exercise of discretion and independent judgment with respect to matters of significance. Find more information from the DOLs Wage and Hour Division,which includes exempt salary information on: This Employment Law News blog is intended for market awareness only, it is not to be used for legal advice or counsel. Mia is an HR Generalist who fell into HR after realizing that being a psychologist wasnt quite the right fit. In the context of FLSA and using regulatory language from the Department of Labor, an administrative positions main duty is office or non-manual work directly related to the management or business operations of the company or customers. #block-googletagmanagerheader .field { padding-bottom:0 !important; } Eagan, MN 55121 Track essential employee data, digitize your manual HR processes, and improve your employee experience. 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. With the repeal of the PMWA's EAP regulatory definitions, however, what will it take to qualify as exempt under state law? The contents of this document do not have the force and effect of law and are not meant to bind the public in any way. The FLSA requires that most employees in the United States be paid at least the federal minimum wage for all hours worked and overtime pay at not less than time and one-half the regular rate of pay for all hours worked over 40 hours in a workweek. On October 13, 2022, the U.S. Department of Labor published a Notice of Proposed Rulemaking (NPRM) that proposes to revise the Departments guidance on how to determine who is an employee or independent contractor under the Fair Labor Standards Act (FLSA). Virtual & Washington, DC | February 26-28, 2023. Before sharing sensitive information, make sure youre on a federal government site. However, the FLSA provides an exemption from minimum wage and overtime pay for employees who work as executive, administrative, professional and outside sales employees. $961.54 per week ($50,000 per year) January 1, 2024. Before classifying and treating any employee as FLSA exempt, employers need to do their due diligence in confirming that the employee satisfies all tests for exemption under all applicable laws, both federal and state. $1,057.69 per week ($55,000 per year) January 1, 2025. WHD will continue to enforce the 2004 part 541 regulations through December 31, 2019, including the $455 per week standard salary . However, non-employees (meaning freelance or independent contract workers) are clearly not covered under FLSA. Washington, DC 202101-866-4-US-WAGE1-866-487-9243, Administrator Interpretations, Opinion and Ruling Letters, Resources for State and Local Governments, The Construction Industry under the Fair Labor Standards Act (FLSA), Restaurants and Fast Food Establishments under the Fair Labor Standards Act (FLSA), Employing Youth in Restaurants under the Fair Labor Standards Act (FLSA), Professional Offices under the Fair Labor Standards Act (FLSA), Security Guard/Maintenance Service Industry under the Fair Labor Standards Act (FLSA), Real Estate and Rental Agencies under the Fair Labor Standards Act (FLSA), Retail Industry under the Fair Labor Standards Act (FLSA), State and Local Governments under the Fair Labor Standards Act (FLSA), Police and Fire Fighters under the Fair Labor Standards Act (FLSA), Manufacturing Establishments under the Fair Labor Standards Act (FLSA), Wholesale and Warehouse Industries under the Fair Labor Standards Act (FLSA), Automobile Dealers under the Fair Labor Standards Act (FLSA), Agricultural Employers under the Fair Labor Standards Act (FLSA), Employment Relationship under the Fair Labor Standards Act (FLSA), Coverage under the Fair Labor Standards Act (FLSA), Non-Profit Organizations and the Fair Labor Standards Act (FLSA), Tipped Employees Under the Fair Labor Standards Act (FLSA), Tipped Employees under the Fair Labor Standards Act (FLSA) and Dual Jobs, Deductions From Wages For Uniforms And Other Facilities under the Fair Labor Standards Act (FLSA), Exemption for Executive, Administrative, Professional, Computer and Outside Sales, Highly-Compensated Workers, Part 541 Exemptions, Insurance Claims Adjusters, Part 541 Exemptions, Financial Services Industry Employees, Part 541 Exemptions, Technologists and Technicians, Part 541 Exemptions, Construction Workers, Part 541 Exemptions, Journalists/Reporters, Part 541 Exemptions, Higher Education Institutions and Overtime Pay Under the Fair Labor Standards Act (FLSA), Special Salary Levels For the U.S. Pennsylvania Raises Exempt Salary Threshold The Pennsylvania Department of Labor and Industry published its final rule to substantially increase the salary cutoff for exempt executive,. Arkansas. All rights reserved. //this code handles the expanding and closing of the button The following is a comprehensive list of the exempt status salary threshold by state. Track your regular work hours, break time, and overtime hours. For more information specifically about FLSA, go to Eddys HR Encyclopedia article here. A common misconception is that it is up to the employer to choose whether or not someone is exempt from FLSA. New York City has the highest minimum wage requirements, and other parts of New York are working to match the Citys existing requirements. .table thead th {background-color:#f1f1f1;color:#222;} The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments. What is good faith compliance or conformity? The minimum salary for exempt employees in New York City remains at $1,125 per week or $58,500 per year. What is the Wage and Hour Divisions enforcement authority under the H-1B program? For the executive . if (vTopic != null){ While an hourly wage consists of compensation for each hour worked, a salary means an employee is paid a guaranteed amount for each pay period, regardless of how many hours they work. var target = this.nextElementSibling.classList.value; Such employees who meet the duties requirements must be paid a salary of at least $112,065.20 annually or $53.80 per hour to be considered exempt. Employers that operate across the U.S. have plenty of wage and hour issues to monitor. Starting with Alaska, exempt employees must be paid two times the state minimum wage for the first 40 hours worked each week, excluding board or lodging from the employer. //this code handles the closing of the button event if any are expanded. with GovDocs Employment Law News. Whether you manage a postings, minimum wage or paid leave program, our products cut through research time, provide proactive insights into the everchanging landscape of employment laws and reduce the risk of noncompliance. Join us at theSHRM Annual Conference & Expo 2021, taking place Sept. 9-12 in Las Vegas and virtually.]. The Department believes that its proposed rule would reduce the risk that employees are misclassified as independent contractors, while providing added certainty for businesses that engage (or wish to engage) with individuals who are in business for themselves. var temp_style = document.createElement('style'); While it would not be plausible to list all of the job tasks that fall under FLSA exempt job duties, well look at the main three. A salary level of $6,500 per year, as well as meeting other standards, would qualify someone for the white-collar exemptions, according to a new final rule. However, when a position qualifies as exempt under FLSA, you may choose to keep it as non-exempt or to change it to exempt. In the State of Florida, being paid on a "salary basis" means that an employee regularly receives an agreed amount of compensation each pay period on a weekly or less frequent basis. The Obama Administration attempted to raise the minimum salary requirement from $455 per week to $921 per week. Below are the jurisdictions with laws that require exempt employees to have a salary basis above the FLSA threshold to be considered exempt employees as of Jan. 1, 2023. div#block-eoguidanceviewheader .dol-alerts p {padding: 0;margin: 0;} The exemptions provided by FLSA Section 13(a)(1) apply only to white-collar employees who meet the salary and duties tests set forth in the Part 541 regulations. el: '#searchBox' } For employees regularly working over 40 hours a week,you dont have to pay overtime, and you can give those employees more flexibility. .agency-blurb-container .agency_blurb.background--light { padding: 0; } The employee must be employed as a computer systems analyst, computer programmer, software engineer or other similarly skilled worker in the computer field performing the duties described below; The employees primary duty must consist of: The application of systems analysis techniques and procedures, including consulting with users, to determine hardware, software or system functional specifications; The design, development, documentation, analysis, creation, testing or modification of computer systems or programs, including prototypes, based on and related to user or system design specifications; The design, documentation, testing, creation or modification of computer programs related to machine operating systems; or. This document is intended only to provide clarity to the public regarding existing requirements under the law or agency policies. .h1 {font-family:'Merriweather';font-weight:700;} Employees who may receive professional exemption may include: If you or a loved one would like to learn more about New York Minimum Salary Exempt Employees, get your free consultation with one of our Employment Attorneys in New York today! This means that the minimum salary level for exemption has been increased from $455 to $913 a week and the minimum annual income for the highly compensated exempt status has been raised from $100,000 to $134,004. @media only screen and (min-width: 0px){.agency-nav-container.nav-is-open {overflow-y: unset!important;}} The site is secure. 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. Computer professionals: $50.00 per hour; $8,679.16 per month; $104,149.81 per year. p.usa-alert__text {margin-bottom:0!important;} .usa-footer .container {max-width:1440px!important;} The FLSA also increased its salary threshold for exempt employees to $684 per week ($35,568 annually), so employers will continue to have to meet that standard to classify employees as exempt under the executive, administrative or professional exemptions. Must an H-1B employer recruit U.S. workers before seeking H-1B workers? In October 2020, the Pennsylvania Department of Labor and Industry (DLI) published itsfinal ruleto substantially increase the salary threshold for qualifying as an exempt EAP employee under the PMWA to: Effective Oct. 3, 2023 (and each third year thereafter), the salary threshold would reset automatically to the 10th percentile of Pennsylvania workers who work in exempt EAP classifications. Beginning January 1, 2022, these employees must earn at least: $50 per hour (for all hours worked); or A monthly salary of $8,679.16; and An annual salary of $104,149.81. This process isnt always clear cut. What benefits must be offered to H-1B workers? Find the latest news and members-only resources that can help employers navigate in an uncertain economy. The employees 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. This act is the federal mandate for how to pay employees, which includes how to classify them as exempt or non-exempt from being entitled to overtime pay, among other things. You have successfully saved this page as a bookmark. .usa-footer .grid-container {padding-left: 30px!important;} The more search terms, the narrower the results. $(".drupal-dropdown").removeClass("expanded"); What are the rules concerning deductions from an H-1B workers pay? */. .manual-search ul.usa-list li {max-width:100%;} In Maine, an exempt employees regular annual compensation must exceed 3,000 times the states minimum hourly wage or federal rate (whichever is higher). Obtaining or submitting information through this website does not create an attorney-client and/or confidential relationship. Exemption - Blue-Collar Workers, Part 541, Exemption -Insurance Claims Adjusters, Part 541, Exemption -Financial Services Industry Employees, Part 541, Exemption -Technologists and Technicians, Part 541, Exemption -Construction Workers, Part 541, Exemption -Journalists/Reporters, Part 541, Higher Education Institutions and Overtime Pay - FLSA, Exemptions - Recreational Establishments, Seasonal Amusement, Motor Carrier Exemption, Truck Drivers, Interstate Truck Drivers, Hours Worked, Waiting Time, On-call Time, Breaks, Lunch Breaks, Sleeping Time, Training Time, Travel Time, Commute, Overnight Travel, FMLA, Medical Leave, Family Medical Leave, FMLA Military Leave Entitlements, Veteran, Armed Forces, Military, Military Family, FMLA Certification of a Serious Health Condition, FMLA Special Rules for Airline Flight Crew Employees, FMLA Son or Daughter 18 years of age or older, Leave under the FMLA for Spouses Working for the Same Employer, Leave Provisions - Military Family under the FMLA, Military Caregiver Leave for a Current Servicemember under the FMLA, Military Caregiver Leave for a Veteran under the FMLA, Joint Employment and Employer Responsibilities Under the FMLA, Independent Contractors, Joint Employment, Recreation Establishments, Amusement Parks, Grocery Stores, Supermarket, Meat Slicer, Trash Compactor, Baler, Hours Limits, Maximum Hours, Subminimum Wages, Workers With Disabilities, Subminimum Wages, Certificates Under Section 14(c) of the FLSA, Workers With Disabilities, Subminimum Wages, Commensurate Wages Under Section 14(c), Workers With Disabilities, Subminimum Wages, Hours Worked under Section 14(c) of the FLSA, Workers With Disabilities, Subminimum Wages, Personal Time, Fatigue and Delay Allowances Under Section 14(c), Piece Rates, Workers With Disabilities, Subminimum Wages, Hourly Commensurate Wage Rates Under Section 14(c), Workers With Disabilities, Subminimum Wages, Service Contracts Under Section 14(c), Workers With Disabilities, Workers With Disabilities, CRP Compliance Baseline Survey, Child Labor, Youth employment, teen employment, teen workers, teen employees, prohibited occupations, hazardous occupations, prohibited jobs, hazardous jobs, Field Sanitation Standards under OSHA, Farmworkers, Farm Employees, Agricultural Workers, Agricultural Employees, Ag Employees, Migrant Workers, Migrant Employees, Seasonal Workers, Seasonal Employees, Drinking Water, Toilets, Handwashing, Regular Rate of Pay, State and Local Scheduling Law Penalties, H-1B, Recordkeeping, H-1B dependent/willful violator, H-1B, Recruitment; industry-wide standards, McNamara-OHara Service Contract Act (SCA), Full-Time Employee under H-1B Visa Program, Job Hours and the three-Fourths Guarantee, H-2B, Inbound and Outbound transportation Expenses, and Visa and Other Related Fees, Disclosure of the Job Order and Notice of Worker Rights, Employer Obligations Under the Temporary H-2B Visa Cap Increase. There are certain qualifications an employee must meet in order to correctly receive the exempt classification. An exempt employee almost always gets a salary, meaning they are paid the same amount regardless of how many hours they work (although there are a few exceptions). [CDATA[// >