For employees with multiple appointment types with the same employer, it is sometimes unclear which position is their primary duty for purposes of determining exempt or nonexempt status. The current minimum salary threshold sits at $35,568 annually, which was put into place at the start of 2020 following a lengthy process that began during the Obama administration. If the employee works 50 hours, the regular rate is $9.60 ($480 divided by 50 hours). Also prohibited are partial displacements such as reducing employees hours, wages, or employment benefits. Non-exempt It does not matter if the employee is working full-time or part-time. ]]>*/, New: Interactive Handy Reference Guide to the Fair Labor Standards Act (PDF), (For best printout, see the PDF version.) Wages required by the FLSA are due on the regular payday for the pay period covered. .usa-footer .container {max-width:1440px!important;} The total annual compensation requirement for highly compensated employees will increase from $100,000 to $107,432. The regular rate of pay for that week is $405 divided by 45, or $9.00 an hour. /*--> 1){ Otherwise they remain overtime exempt. Exempt employees, because of their rate of pay and type of work that they do, are not eligible for overtime pay for hours worked over 40 in a workweek. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRMs permission. Such employees include those who: work in communications or transportation; regularly use the mails, telephones, or telegraph for interstate communication, or keep records of interstate transactions; handle, ship, or receive goods moving in interstate commerce; regularly cross State lines in the course of employment; or work for independent employers who contract to do clerical, custodial, maintenance, or other work for firms engaged in interstate commerce or in the production of goods for interstate commerce. Employees must be paid a salary of at least $684 per week/$35,568 annually, and the employee's duties must fall within one of the so-called "white collar exemptions." 1/1/2022. For classified employees and those employees exempt from civil service the salary threshold discussed in question #1 should be applied in order to exempt the position. regardless of what happens to the now-blocked federal overtime rule. New OSHA Guidance Clarifies Return-to-Work Expectations, Trump Suspends New H-1B Visas Through 2020, Faking COVID-19 Illness Can Have Serious Consequences, White House Takes Action Against Migrant Child Labor, How to Handle Overtime, Meal Break and Other Wage and Hour Crises. The piece rate must be the one actually paid during nonovertime hours and must be enough to yield at least the minimum wage per hour. The salary threshold to qualify for exemption is $958.30 per week under WMWA. Your session has expired. The Obama DOL wanted a raise to $913 per week, but a court enjoined that increase and so the salary was raised from $455 to $684 a week. The Wage and Hour Division (WHD) of the U.S. Department of Labor (DOL) administers and enforces the FLSA with respect to private employment, State and local government employment, and Federal employees of the Library of Congress, U.S. The final rule is effective Jan. 1, 2020 and isestimated toextend overtime protections to more than one million workers who are not currently eligible under federal law. Effective January 1, 2021 the Washington State Department of Labor & Industries (L&I) increased the weekly standard salary level required to exempt executive, administrative or professional (EAP) employees from Washington States overtime pay requirements. 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;}'; In that case, an additional $4.00 is due for each of the 20 overtime hours for a total of $560 for the week. However, some States do have laws under which such claims (sometimes including fringe benefits) may be filed. Visit Here. Hospitals and residential care establishments may adopt, by agreement with their employees, a 14-day work period instead of the usual 7-day workweek if the employees are paid at least time and one-half their regular rates for hours worked over 8 in a day or 80 in a 14-day work period, whichever is the greater number of overtime hours. Under both federal and state law, teachers are exempt if their primary duty is teaching, tutoring, instructing or lecturing to impart knowledge and that person also performs these duties at an educational establishment. The salary threshold required to exempt EAP employees from overtime protections under FLSA are different. See WAC 296-128-533(1)(c). Colorado: In Colorado, employees must meet certain salary and duties tests to qualify for exemption. The final rule updates the earnings thresholds necessary to exempt executive, administrative and professional employees from the Fair Labor Standards Act's (FLSA) minimum wage and overtime pay . $("span.current-site").html("SHRM MENA "); Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRMs permission. is time given to an employee in lieu of overtime pay for hours worked in excess of the established 40-hour workweek. Employees have to meet both the threshold salary test and the duties test to be considered overtime exempt. California's exempt salary threshold will rise along withthe state's minimum wage L&I also updated its EAP duties tests to more closely align with the federal standards. Small entities wishing to comment on WHD enforcement activities may call 1-888-REG-FAIR (1-888-734-3247), or write the Office of the National Ombudsman, U.S. Small Business Administration, 409 3rd Street, SW, MC2120, Washington, DC 20416-0005, or visit the Ombudsmans internet website,www.sba.gov/ombudsman/. Employers are required to provide reasonable break time for an employee to express breast milk for her nursing child for one year after the childs birth each time such employee has need to express the milk. Anyone who is involved in HR, supervises the HR function or otherwise has an interest in HR is Being paid on a "salary basis" means an employee regularly receives a predetermined amount of compensation each pay period on a weekly, or less frequent, basis. var temp_style = document.createElement('style'); Learn how SHRM Certification can accelerate your career growth by earning a SHRM-CP or SHRM-SCP. Salaried exempt employees have to earn at least the state thresholds because they are higher than the federal threshold. Gain the intel you need now to successfully anticipate and navigate employment laws, stay compliant and mitigate legal risks. The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in Federal, State, and local governments. All employees that hold positions determined to be covered under the mandatory overtime provisions of the FLSA are covered. Whether compliance would be an undue hardship is determined by looking at the difficulty or expense of compliance for a specific employer in comparison to the size, financial resources, nature, and structure of the employers business. 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. }); if($('.container-footer').length > 1){ var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); Las Cruces: $11.50 per hour for nontipped employees and $4.60 per hour for tipped employees. Employees who have filed complaints or provided information cannot be discriminated against or discharged on account of such activity. When state and federal thresholds conflict, businesses must meet the threshold most favorable to employees. Starting in 2021, the state salary threshold will exceed the federal threshold. The proposal is expected to be issued in the near future. In addition, academically oriented youths enrolled in an approved Work-Study Program (WSP) may be employed during school hours. Employers with 51 or More Employees: $958.30 per week. 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