Although the specific criteria differ by exemption, all exemptions are based on two broad factors: the manner and amount of pay the employee receives ("salary test") and the employee's job duties ("duties test"). An employee must surpass the minimum thresholds for both tests to be exempt ...
The salary threshold test sets the floor on the minimum amount of money that an employee must be paid before the FLSA permits an employer to claim an exemption and therefore NOT have to pay that employee overtime. What is the current Salary Threshold under the FLSA?
Employers can use thepayroll compliance checklistto help ensure employees are classified correctly. Exemption status isnotbased on job title alone. For a position to fall under the administrative exemption it must: Be paid a salary not hourly; ...
The new overtime rule increases the FLSA salary threshold to $43,888 annually ($844 per week), up from $35,568 ($684 per week). This new law changes what qualifies as an exempt employee. But, this threshold is only one of three requirements employees must meet for FLSA exemption. ...
Starting in 2027, the salary threshold will be automatically updated every three years to keep pace with changes in worker pay. Being unaware of the latest regulatory changes won’t absolve you of the responsibility for a potential FLSA violation. To avoid an FLSA lawsuit, regularly check ...
Per theDepartment of Labor, the maximum penalty for repeatedly or willfully violating FLSA minimum wage and overtime laws is $2,374 per employee. The maximum penalty for violating child labor standards is $15,138; $68,801 if the violation causes serious injury or death of a minor; or $137...
Salary basis test. Generally, an employee is paid on a salary basis if s/he has a "guaranteed minimum" amount of money s/he can count on receiving for any work week in which s/he performs "any" work. This amount need not be the entire compensation received, but there must be some ...
Exemption under the Fair Labor Standards Act: The cost of misclassifying employees The Fair Labor Standards Act of 1938 created two classes of employees鈥攖hose who are paid for each hour of their labor and those who are given a salary due to the administrative, professional, or executive natu...
To classify an employee as exempt, they must be paid a gross minimum weekly salary of at least $684 per week ($35,568 per year). They must also have job duties and responsibilities that meet the exemption tests—such as managing, supervising 2 or more employees, hiring, firing, making ...
Update: Governor Wolf agreed to repeal the regulations mentioned below that increased the minimum salary required for the Executive, Administrative, and Professional overtime exemptions. This provision will go effect on September 7, 2021 and repeals all of the PA regulations for these exemptions. ...