FLSA Changes Overtime Requirements
The Department of Labor changed the Fair Labor Standards Act requirements for paying overtime (among other things). You can read about the release here.
Eric Jones: Welcome everybody. My name's Eric Jones from Workforce PayHub, and this is your legislative minute.
Eric Jones: This week the Department of Labor issued new guidance on FLSA exempt salary wage limitations. The old limitation started at $455 per week. The new ruling is $684 per week, which amounts to approximately $35,568 exactly.
Eric Jones: Now to ensure that an employee does qualify for that exempt status, there are three stages that you need to review. Stage one, they have to be paid on a salary basis, meaning the same amount on a regular basis every week, two weeks, semimonthly, monthly, whatever. It has to be consistent. Number two, is that salary needs to meet that new minimum threshold of approximately 35 to $36,000 a year. Now that third is the duties test. The duties test is making sure that that person in that specific role is considered exempt. Those could be executive, administrative, professional, computer, outside sales. Now, if you have questions on this, I do recommend that you seek external legal counsel to recommend, based on your exact circumstances.
Eric Jones: I appreciate you listening and tuning in. This has been your legislative minute.
Chilah Weller: Eric, you didn't even tell them when this legislation started.
Eric Jones: My bad. Miss Weller.
Chilah Weller: This legislation goes into effect on January 1st of 2020. Thanks for tuning in.
Eric Jones: Thanks.