The advanced knowledge must be customarily acquired by a prolonged course of specialized intellectual instruction. Whether the employer offers overtime to exempt employees is completely up to their own independent judgement. .usa-footer .grid-container {padding-left: 30px!important;} An underpublicized feature of the new federal rule is that it formally rescinds the 2016 final rule that, although enjoined, has remained a part of the official rules published by USDOL. 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. For 2020, employees must earn a minimum or … The FLSA provides minimum standards that may be exceeded, but cannot be waived or reduced. Employers need to check their state law before relying solely on the FLSA HCE exemption. The Salary Basis Test and the Fair Labor Standards Act. 1-866-487-9243, Administrator Interpretations, Opinion and Ruling Letters, Resources for State and Local Governments, Fact Sheet #17A: Exemption for Executive, Administrative, Professional, Computer & Outside Sales Employees Under the Fair Labor Standards Act (FLSA), https://www.federalregister.gov/documents/2019/09/27/2019-20353/defining-and-delimiting-the-exemptions-for-executive-administrative-professional-outside-sales-and, Severe Storm and Flood Recovery Assistance. 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. Most employees must meet all three "tests" to be exempt. With few exceptions, to be exempt an employee must (a) be paid at least $23,600 per year ($455 per week), and (b) be paid on a salary basis, and also (c) perform exempt job duties. Check out what FLSA laws say about exempt employees and what you can require of them. The regulation increases the EAP salary threshold under Pennsylvania law to: $684 per week ($35,568 annually) effective Oct. 3, 2020. Teaching positions are exempt under a different FLSA provision and are not subject to the salary threshold. Extra Pay. The exemptions also do not apply to police officers, detectives, deputy sheriffs, state troopers, highway patrol officers, investigators, inspectors, correctional officers, parole or probation officers, park rangers, fire fighters, paramedics, emergency medical technicians, ambulance personnel, rescue workers, hazardous materials workers and similar employees, regardless of rank or pay level, who perform work such as preventing, controlling or extinguishing fires of any type; rescuing fire, crime or accident victims; preventing or detecting crimes; conducting investigations or inspections for violations of law; performing surveillance; pursuing, restraining and apprehending suspects; detaining or supervising suspected and convicted criminals, including those on probation or parole; interviewing witnesses; interrogating and fingerprinting suspects; preparing investigative reports; or other similar work. ©1996-2020 Davis Wright Tremaine LLP. 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 core concern of salary reductions involves the FLSA’s “salary basis” test. A combination of the aforementioned duties, the performance of which requires the same level of skills. The final rule is available at: https://www.federalregister.gov/documents/2019/09/27/2019-20353/defining-and-delimiting-the-exemptions-for-executive-administrative-professional-outside-sales-and. 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. As of January 1, 2020, the FLSA salary threshold is $36,568 per year (or $684 per week). All employees are eligible for overtime pay unless they meet all three of these criteria: They are salaried, not hourly, employees. A salary basis means that the employee receives a predetermined salary regardless of the number of hours they work. 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). First, USDOL revised its methodology for adjusting the highly compensated employee (HCE) total annual compensation requirement. The new rule will be effective Jan. 1, 2020. The FLSA's minimum salary requirement is set to remain the same in 2021. To be exempt, an employee usually has to make at least $455 per week (or $23,600 a year), be salaried, and be assigned exempt job responsibilities. 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