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 employee’s 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. However, some state laws prohibit this practice. #block-opa-theme-content > div > div.guidance-search > div.csv-feed.views-data-export-feed {display:none;} Payment on a salary basis on its own does not render the employee exempt from the overtime requirements of the FLSA. Second, the USDOL scrapped its proposal to update the salary threshold and EAP rules every four years. @media (min-width: 768px) {.ebsa-guidance .ebsa-row span {min-width: 150px;}} .manual-search-block #edit-actions--2 {order:2;} The new salary rule adjusts the minimum salary for an exempt employee from $466 per week to $684 per week. The employee’s primary duty must be the performance of work requiring advanced knowledge, defined as work which is predominantly intellectual in character and which includes work requiring the consistent exercise of discretion and judgment; The advanced knowledge must be in a field of science or learning; and. To be considered "exempt," these employees must generally satisfy three tests: Salary-level test. FLSA-covered, non-management employees in production, maintenance, construction and similar occupations such as carpenters, electricians, mechanics, plumbers, iron workers, craftsmen, operating engineers, longshoremen, construction workers and laborers are entitled to minimum wage and overtime premium pay under the FLSA, and are not exempt under the Part 541 regulations no matter how highly paid they might be. The FLSA's minimum salary requirement is set to remain the same in 2021. The exemptions do not apply to manual laborers or other “blue-collar” workers who perform work involving repetitive operations with their hands, physical skill and energy. div#block-eoguidanceviewheader .dol-alerts p {padding: 0;margin: 0;} Any exempt employee who currently earns a weekly salary that is less than $684 per week will be impacted by this new rule. The U.S. Department of Labor (DOL) considered input from public comment and held listening sessions during 2018 as part of the review process. .usa-footer .grid-container {padding-left: 30px!important;} Thus, by October 3, 2021, any employee classified as exempt under a white-collar exemption that has a minimum salary requirement who earns less than that amount will need to receive a salary increase to at least meet this amount or be reclassified as non-exempt (and made eligible for overtime pay) going forward. Highly compensated employees performing office or non-manual work and paid total annual compensation of $107,432 or more (which must include at least $684* per week paid on a salary or fee basis) are exempt from the FLSA if they customarily and regularly perform at least one of the duties of an exempt executive, administrative or professional employee identified in the standard tests … Effective January 1, 2020, the California threshold for employers of 26 or more employees will increase to $54,080 per year (or $1,040 per week). Extra Pay. For additional information, visit our Wage and Hour Division Website: http://www.wagehour.dol.gov and/or call our toll-free information and helpline, available 8 a.m. to 5 p.m. in your time zone, 1-866-4USWAGE (1-866-487-9243). CAUTION - Before you proceed, please note: By clicking “accept” you agree that our review of the information contained in your e-mail and any attachments will not create an attorney-client relationship, and will not prevent any lawyer in our firm from representing a party in any matter where that information is relevant, even if you submitted the information in good faith to retain us. Similarly, employers may, on their own initiative or under a collective bargaining agreement, provide a higher wage, shorter workweek, or higher overtime premium than provided under the FLSA. The new rule will be effective Jan. 1, 2020. exempt employee salary deductions The Fair Labor Standards Act (FLSA) requires that most covered employees receive overtime pay at time and one-half their regular rate of pay for all hours worked in excess of 40 per week. This means that the minimum salary for exempt employees in 2021 is either: $4,506.67 per month (or $54,080.00 annually) if the employee works for an employer of 25 or fewer people, or $4,853.34 per month (or $58,240.00 annually) if the employee works for an employer of more than 25 people.⁠ 16 The new threshold effective January 1, 2020 will be $107,432 annually (not the proposed $147,000). ALL RIGHTS RESERVED. This is an increase from the current $23,660 annual salary (or $455 per week). The new rule changes the current salary level for exempt employees from $23,660 per year to $35,568 annually. Employers and employees alike commonly assume that “salary = exempt” and “non-exempt = hourly,” but both assumptions are incorrect. 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. The FLSA recordkeeping regulations do not require that the same workweek be adopted for both non-exempt and exempt employees. Employers should also be aware that some state minimum wage laws lack an FLSA-identical HCE exemption; so, as a practical effect, the HCE exemption may be unavailable in certain state. .usa-footer .container {max-width:1440px!important;} 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 annually). Effective January 1, 2020, the New York threshold for executive and administrative exempts currently ranges from $885 to $1,125 per week ($46,020 annually to $58,500 annually) depending on size and location. Salary basis, personal leave, and paid vacation benefits Although an employer must pay a salaried, exempt employee for the entire day in which the employee performs any work, this does not mean that the employer may not make partial day deductions from the employee’s accrued or promised paid vacation leave. The employee’s primary duty must be the performance of work requiring invention, imagination, originality or talent in a recognized field of artistic or creative endeavor. @media only screen and (min-width: 0px){.agency-nav-container.nav-is-open {overflow-y: unset!important;}} Per FLSA law, this salary is not annualized for part-time employees. Prior results do not guarantee a similar outcome. This publication is for general information and is not to be considered in the same light as official statements of position contained in the regulations. 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