The employees primary duty must be managing the enterprise, or managing a customarily recognized department or subdivision of the enterprise; The employee must customarily and regularly direct the work of at least two or more other full-time employees or their equivalent; and. What are an H-1B employers notification requirements? 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. $(document).delegate(".drupal-drop-button", "click", function (event) { The minimum salary for exempt employees in New York City remains at $1,125 per week or $58,500 per year. How to handle sick leave, holidays, jury duty, military leave, and other possibilities must be clearly set out in policies and procedures. Please purchase a SHRM membership before saving bookmarks. When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. $(document).ready(function ($) { For non-exempt employees, it can be as simple as setting hourly requirements, tracking them, and then setting performance expectations accordingly. The new proposal is likely to be issued in the near future and could be issued as early as this month. var temp_style = document.createElement('style'); You have successfully saved this page as a bookmark. .cd-main-content p, blockquote {margin-bottom:1em;} What are the requirements to participate in the H-1B1 program? The FLSA provides minimum standards that may be exceeded, but cannot be waived or reduced. $("span.current-site").html("SHRM China "); The federal Fair Labor Standards Act (FLSA) exempts certain employees from federal and state minimum wage and overtime laws. The employees primary duty includes the exercise of discretion and independent judgment with respect to matters of significance. . The overtime threshold and employer's . } What protections are there for whistleblowers? To request permission for specific items, click on the reuse permissions button on the page where you find the item. Federal government websites often end in .gov or .mil. New York City has the highest minimum wage requirements, and other parts of New York are working to match the Citys existing requirements. To qualify for the executive employee exemption, all of the following tests must be met: To qualify for the administrative employee exemption, all of the following tests must be met: To qualify for the learned professional employee exemption, all of the following tests must be met: To qualify for the creative professional employee exemption, all of the following tests must be met: To qualify for the computer employee exemption, the following tests must be met: To qualify for the outside sales employee exemption, all of the following tests must be met: 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 for exemption. Positions like specialized software engineers or computer programmers may be exempt; one clue is a higher pay grade. //this code handles the expanding and closing of the button In Maine, an exempt employees regular annual compensation must exceed 3,000 times the states minimum hourly wage or federal rate (whichever is higher). let options = { Common examples of learned exempt professional job duties fall under jobs like doctors, dentists, and teachers. .manual-search-block #edit-actions--2 {order:2;} In the State of Florida, being paid on a "salary basis" means that an employee regularly receives an agreed amount of compensation each pay period on a weekly or less frequent basis. 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. . Colorado: In Colorado, employees must meet certain salary and duties tests to qualify for exemption. Join our free community of HR professionals. document.querySelector(".drupal-dropdown > li").focus(); } THE REGULATIONS AT 34 PA. CODE 231.82 (RELATING TO EXECUTIVE) 231.83 (RELATING TO ADMINISTRATIVE) AND 231.84 (RELATING TO PROFESSIONAL) ARE ABROGATED. window.onclick = function (event) { if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) { The exemptions provided by FLSA Section 13(a)(1) apply only to white-collar employees who meet the salary and duties tests set forth in the Part 541 regulations. In 2021, the salary threshold for overtime was $684 a week, or $35,568 per year. Have you wondered why some employees dont receive overtime pay? A common misconception is that it is up to the employer to choose whether or not someone is exempt from FLSA. The position is executive, and therefore exempt if it incorporates all three of these responsibilities. .table thead th {background-color:#f1f1f1;color:#222;} FLSA exempt is a classification that falls under the federal Fair Labor Standards Act (FLSA). 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). Suite 400 ~$65,478.40 (2 x Minimum Wage, Employers with 51 or more Employees). Pennsylvania Repeals Rule Increasing Exempt Salary Threshold . Police, Law enforcement, police, fire fighters, legal, authority, municipality, county, prevention, emergency, public safety, investigation, prison, jail, probation, crime, offenses, Manufacturing Establishments, Production, machinery, industrial, products, supplies, material, facility, systems, warehouse, distribution, wholesale, retail, goods, interstate, commerce, logistics, Wholesale Industries,Warehouse Industries, Sale, goods, storage, client, trade, retail, products, consultation, distribution, pack, deliver, driver, forklift, database, storage, logistics, partners, Automobile Dealers, Car, truck, SUV, bus, electrical, hybrids, gas, new, used, retail, sale, purchase, manufacture, purchase, customer service, insurance, service, body shop, parts, marketing, warranty, finance, inventory, Agricultural Employers, Agriculture, Farming, Ag, employers, agricultural workers, agricultural employers, FLSA, farmworkers, farm, farmer, man day, farm labor contractor, Employment Relationship, Independent Contractors, Misclassification, Coverage the Fair Labor Standards Act, FLSA, coverage, minimum wage, overtime, child labor, recordkeeping, workers, enterprise coverage, individual coverage, Non-profit, Non-profit, associations, organizations, charity, religion, educational, Exemption - Executive, Administrative, Professional, Computer and Outside Sales, Exemption -Highly-Compensated Workers, Part 541. 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 employees 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. } ol{list-style-type: decimal;} 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. 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. #block-googletagmanagerfooter .field { padding-bottom:0 !important; } Before sharing sensitive information, make sure youre on a federal government site. .usa-footer .grid-container {padding-left: 30px!important;} }); if($('.container-footer').length > 1){ However, Section 13(a)(1) of the FLSA provides an exemption from both minimum wage and overtime pay for employees employed as bona fide executive, administrative, professional and outside sales employees. As of 2022, the minimum salary for exempt Long Island and Westchester employees is $1,125 per week or $58,500 per year. .h1 {font-family:'Merriweather';font-weight:700;} Members may download one copy of our sample forms and templates for your personal use within your organization. $(this).next().addClass('expanded'); Reduce payroll errors, stay compliant with complicated laws, and meet deadlines with Eddy. $58,240 (employers with 25 or fewer employees), $62,400 (employers with 26 or more employees), $64,480 (All employers regardless of size), $58,511 (NYC, Nassau, Suffolk, Westchester), $55,341 (12/31/2022 for All other NY Workers), ~$50,740 (1.75 x Minimum Wage, All Employers 2022), ~$57,293.60 (1.75 x Minimum Wage, Employers with 1-50 Employees). Be exceeded, but can not be waived or reduced already has a minimum wage requirements, and therefore if! Hourly wage in Nassau County, and other parts of new York City already has a minimum wage, are. 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