A Texas court blocked the Obama era regulation from taking effect in November 2016, and the DOL later abandoned it. Posted in Fair Labor Standards Act (FLSA) On March 7, 2019, the United States Department of Labor (“USDOL”) issued its long-awaited proposed rule that would increase the minimum salary threshold to qualify for exemption from the overtime provisions of the Fair Labor Standards Act (“FLSA”) from their current level of $455 per week ($23,660 annually) to $679 per week ($35,308 … While there are exceptions, typically, an employee must meet 3 tests to be exempt: be paid at least $455* ($684 as of 1/1/2020) per week be paid on a salaried basis, and perform exempt job duties. This means, that if you have a salaried exempt employee making LESS than $684 per week, effective January 1, 2020, they will need to be reclassified as non-exempt … These exemptions also apply in Texas. In 2019, the minimum salary for employees exempt from overtime is $49,920.00 annually for employers with at least 26 employees, and $45,760.00 annually for employers with fewer than 26 employees. Regulatory History C. Overview of Existing Regulatory Requirements D. The Department's Proposal E. Final Rule Effective Date III. The final rule: Raises the salary threshold to $684 a week or $35,568 a year (up from $455 a week or $23,660 a year). In 2016, the DOL proposed increasing the minimum salary threshold from $23,660 to over $47,476, more than doubling this amount. To avoid paying this extra money, companies sometimes give their workers “inflated” job titles or just put them on a salary and claim they are exempt from receiving overtime under federal law. This amount has been updated only once since the 1970s – in 2004. Exempt White-Collar Employees •Executive, administrative, professional, outside sales representative, computer professional •Both salary and duties tests must be satisfied •Minimum salary - $455/week •Duties test – focus is on “primary duty” of exempt work – exempt employees customarily and regularly perform an exempt duty as their The 2019 Final Rule increases the new minimum salary level required for the executive, administrative, and professional “white collar” exemptions from $455 a week / $23,660 per year to $684 per week / $35,568 per year (compared to $913 a week / $47,476 per year under the 2016 Final Rule). 29 C.F.R. Employees Not Entitled to Overtime Pay. Salary-level test: If an administrative, professional, executive, or professional computer employee’s weekly salary meets the minimum requirement—which is $455 per week until January 1—they are exempt from overtime pay. 2. Federal law does not provided overtime pay to all classes of works. Raises the total annual compensation level for “highly compensated employees (HCEs)” to $107,432 (up from $100,000). Up to 10% of the salary level for these “white collar” exemptions may be met with nondiscretionary bonuses, incentiv… Federal law requires that most employees who work more than 40 hours a week receive overtime pay. On September 25, 2019, the Department of Labor announced the anticipated final rule change to the Fair Labor Standard Act (FLSA). Standard Salary Level B. Public comments were received from March 22, 2019, to May 21, 2019… § 541.600(a) [“To qualify as an exempt executive, administrative or professional employee under section 13(a)(1) of the Act, an employee must be compensated on a salary basis at a rate of not less than $455 per week (or $380 per week, if employed in American Samoa by employers other than the Federal Government), exclusive of board, lodging or other facilities.”]; see also Cal. As a result of the new threshold proposed by the Department of Labor on March 7, 2019, nearly 1.1 million employees previously exempt from overtime will likely become entitled to overtime based solely on their salary. Effective January 1, 2019, the computer software employee minimum hourly … The amount of time the person spends performing exempt tasks and the ability to make decisions without direct supervision are other f… Non-Exempt Employees. The majority of … Need for Rulemaking IV. If an exempt employee does not meet the minimum salary threshold when the regulations are finalized, the exempt employee will have to be reclassified as a non-exempt employee who is eligible for overtime. Executive exemption. Employees \"primary duties\" are those in which the worker spends more than 50 percent of their time performing during a workweek. 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