Job titles do not determine exempt status. var currentUrl = window.location.href.toLowerCase(); 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. }; 29 CFR 579.1(a)(2)(ii) and 29 CFR 578.3(a)(1). The U.S. Department of Labor outlines the categories and the tests that must be met under the federal FLSA. The 2020 rule raised the salary threshold by amending these three regulations. Job title does not determine whether one is exempt from New York overtime rules. Covered nonexempt workers are entitled to a minimum wage of not less than $7.25 per hour effective July 24, 2009. [CDATA[/* >*/. Such employees who meet the duties requirements must be paid a salary of at least $112,065.20 annually or $53.80 per hour to be considered exempt. For non-exempt employees, it can be as simple as setting hourly requirements, tracking them, and then setting performance expectations accordingly. Exempt computer employees are expected to be paid at least $684 on a salary basis or an hourly basis at a rate not less than $27.63 an hour. 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. Effective January 1, 2022, the minimum salary threshold for these exemptions are: Employers with 1-25 employees: $58,240 per year. var temp_style = document.createElement('style'); Washington, DC 202101-866-4-US-WAGE1-866-487-9243, Administrator Interpretations, Opinion and Ruling Letters, Resources for State and Local Governments, https://www.federalregister.gov/documents/2019/09/27/2019-20353/defining-and-delimiting-the-exemptions-for-executive-administrative-professional-outside-sales-and, Police, Fire Fighters, Paramedics & Other First Responders. The NPRM proposes to rescind the rule, Independent Contractor Status Under the Fair Labor Standards Act (2021 IC Rule), that was published on January 7, 2021, and replace it with an analysis for determining employee or independent contractor status that is more consistent with the FLSA as interpreted by longstanding judicial precedent. el: '#searchBox' Gain the intel you need now to successfully anticipate and navigate employment laws, stay compliant and mitigate legal risks. The .gov means its official. This document is intended only to provide clarity to the public regarding existing requirements under the law or agency policies. This document is intended only to provide clarity to the public regarding existing requirements under the law or agency policies. What are an H-1B employers notification requirements? As a result of a compromise reached during recent budget negotiations, Pennsylvania repealed an administrative rule that would have substantially increased the salary threshold needed to qualify as an exempt executive, administrative and professional (EAP) employee under the Pennsylvania Minimum Wage Act (PMWA). To qualify for the exemption, employees must meet certain tests regarding their job duties and be paid on a salary basis of not less than $684 per week ($35,568 annually). The PMWA exempts employees in "a bona fide executive, administrative, or professional capacity as such terms are defined and delimited from time to time by regulations of the secretary ."Since 1977, those regulations have been set forth in 34 Pa. Code 231.82 (executive), 231.83 (administrative), and 231.84 (professional). p.usa-alert__text {margin-bottom:0!important;} Heres everything you need to know about New Yorks minimum salary for exempt employees in 2022. What is Portability and to whom does it apply? GovDocs, Inc. .usa-footer .grid-container {padding-left: 30px!important;} Application of Federal Labor Laws to Reforestation, Application of Federal Labor Laws to Pine Straw, Call Centers under the Fair Labor Standards Act (FLSA), Rounding Practices for Student-Learners Earning Subminimum Wages, The McNamara-OHara Service Contract Act (SCA). @media (max-width: 992px){.usa-js-mobile-nav--active, .usa-mobile_nav-active {overflow: auto!important;}} On the flip side, employees may expect higher pay rates for exempt positions, and you cant adjust their paycheck based on amount of time worked or output. 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 DOL also signaled its intent to revisit the salary threshold for the highly compensated employee exemption, currently set at $107,432. As mentioned above, to qualify for exemption, employees generally must meet certain tests regarding their job duties and be paid on a salary basis. All rights reserved Reposted with permission. When recruiting, must an employer use procedures that meet industry-wide standards? //-->= 0) { part 541 with an effective date of January 1, 2020. $(document).delegate(".drupal-drop-button", "click", function (event) { A main reason behind this is that commissions often mean these positions exceed the minimum salary requirements for exempt status. Rules for Employing Youth and the Loading of Power-Driven Balers and Compactors under the Fair Labor Standards Act (FLSA), Cooking and Baking under the Federal Youth Employment Provisions of Fair Labor Standards Act (FLSA), Application of the Federal Youth Employment Provisions of the Fair Labor Standards Act (FLSA) to the Employment of lifeguards, Day Laborers Under the Fair Labor Standards Act (FLSA). Almost all Oregon employers are subject to the Fair Labor Standards Act (FLSA), and the minimum salary to qualify for exemption under that law is $684 per week or $35,568 annually (allowing up to 10% of the salary basis threshold to be met with nondiscretionary bonuses/incentives, including commissions, paid at least annually). Members may download one copy of our sample forms and templates for your personal use within your organization. #views-exposed-form-manual-cloud-search-manual-cloud-search-results .form-actions{display:block;flex:1;} #tfa-entry-form .form-actions {justify-content:flex-start;} #node-agency-pages-layout-builder-form .form-actions {display:block;} #tfa-entry-form input {height:55px;} The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. Minimum Wages Are On the Rise in Several States. An official website of the United States government. Currently, the salary threshold for exempt employees is $684 a week ($35,568 annualized), but we expect the DOL's pending proposal to raise the rate to somewhere around $900-$1,000 a week (which works out to be $46,800 to $52,000 when annualized). The list does not include the city/county thresholds for California. The employees primary duty must be the performance of office or non-manual work directly related to the management or general business operations of the employer or the employers customers; and. All rights reserved. .table thead th {background-color:#f1f1f1;color:#222;} On October 13, 2022, the U.S. Department of Labor published a Notice of Proposed Rulemaking (NPRM) that proposes to revise the Departments guidance on how to determine who is an employee or independent contractor under the Fair Labor Standards Act (FLSA). The list includes some special districts in states but does not include all of said districts. An official website of the United States government. For instance, secretaries perform a wide variety of administrative duties, but typically cannot be classified as exempt. This fact sheet provides general information on the exemption from minimum wage and overtime pay provided by Section 13(a)(1) of the FLSA as defined by Regulations, 29 C.F.R. .paragraph--type--html-table .ts-cell-content {max-width: 100%;} Washington, DC 202101-866-4-US-WAGE1-866-487-9243, Administrator Interpretations, Opinion and Ruling Letters, Resources for State and Local Governments, The Construction Industry under the Fair Labor Standards Act (FLSA), Restaurants and Fast Food Establishments under the Fair Labor Standards Act (FLSA), Employing Youth in Restaurants under the Fair Labor Standards Act (FLSA), Professional Offices under the Fair Labor Standards Act (FLSA), Security Guard/Maintenance Service Industry under the Fair Labor Standards Act (FLSA), Real Estate and Rental Agencies under the Fair Labor Standards Act (FLSA), Retail Industry under the Fair Labor Standards Act (FLSA), State and Local Governments under the Fair Labor Standards Act (FLSA), Police and Fire Fighters under the Fair Labor Standards Act (FLSA), Manufacturing Establishments under the Fair Labor Standards Act (FLSA), Wholesale and Warehouse Industries under the Fair Labor Standards Act (FLSA), Automobile Dealers under the Fair Labor Standards Act (FLSA), Agricultural Employers under the Fair Labor Standards Act (FLSA), Employment Relationship under the Fair Labor Standards Act (FLSA), Coverage under the Fair Labor Standards Act (FLSA), Non-Profit Organizations and the Fair Labor Standards Act (FLSA), Tipped Employees Under the Fair Labor Standards Act (FLSA), Tipped Employees under the Fair Labor Standards Act (FLSA) and Dual Jobs, Deductions From Wages For Uniforms And Other Facilities under the Fair Labor Standards Act (FLSA), Exemption for Executive, Administrative, Professional, Computer and Outside Sales, Highly-Compensated Workers, Part 541 Exemptions, Insurance Claims Adjusters, Part 541 Exemptions, Financial Services Industry Employees, Part 541 Exemptions, Technologists and Technicians, Part 541 Exemptions, Construction Workers, Part 541 Exemptions, Journalists/Reporters, Part 541 Exemptions, Higher Education Institutions and Overtime Pay Under the Fair Labor Standards Act (FLSA), Special Salary Levels For the U.S. July 24, 2009 three of these responsibilities. regarding existing requirements under the federal FLSA nonexempt are. 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