There Are Exclusions From FLSA Coverage. A high level of compensation is a strong indicator of an employee’s exempt status, thereby eliminating the need for a detailed analysis of the employee’s job duties. First, USDOL revised its methodology for adjusting the highly compensated employee (HCE) total annual compensation requirement. To meet this requirement, employees must be paid at least $23,660 per year. Something more than just being in an administrative role is required to trigger this exemption. Keep it simple. On occasion, an employee may receive payment on a salary basis but does not perform the exempt duties the FLSA requires for her position. This will include many employees who were exempt under the previous threshold. Employees who fall into this exemption have authority to make decisions without direct guidance or approval of another party. The new Final Rule also allows a “catch-up” payment at years-end, up to 10% of the minimum salary level (that is, $3,556.80 – 10% of $35,568.00), if the employee has not earned enough nondiscretionary pay to meet the $35,568.00. However, expense reimbursements, lodging, contributions to retirement plans or insurance are not included. In other words, the employee makes the same weekly salary whether they work 25 hours, 40 hours, or 60 hours. If there’s a decline in business, or if the employee fails to work the required hours, you may reduce salary to match the reduced work hours, provided the employee’s pay does not fall below the minimum salary requirement. This was a sharp increase from $499 per week threshold that was in place between 2004 and 2016. With this exemption especially—when in doubt, err on the side of caution. Grace Ferguson has been writing professionally since 2009. These employees are usually paid on a salary basis. This requirement is usually fairly easy to meet. Remember—determining whether an employee is exempt from the overtime provisions of the FLSA is a two-step process. Under federal law, effective January 1, 2020, the minimum annual salary threshold is $35,568. 1 (775) 329-4241, 195 E. Reno Ave, Suite B The latter of these two requirements is where most people go astray. Today, the level has plummeted to less than 7 percent because the salary threshold has been frozen at just $23,660 since 2004. Additionally, employees must be paid on a salary basis. }jQuery('#input_1_5').mask('(999) 999-9999').bind('keypress', function(e){if(e.which == 13){jQuery(this).blur();} } );} } );jQuery(document).bind('gform_post_conditional_logic', function(event, formId, fields, isInit){} ); jQuery(document).ready(function(){jQuery(document).trigger('gform_post_render', [1, 1]) } ); 8725 Technology Way, Suite A Starting Dec. 1, exempt salaried employees earning less than $47,476 a year will qualify for time and a half when they work more than 40 hours a week. California's threshold is currently $49,920.00 (annualized) for employers with 25 employees or less and $54,080.00 for employers with 26 employees or more. The employee primarily performs office or non-manual work. Some are very straight forward, others are less so. It is important to remember that a job title is not determinative. 66 2/3% of the average annual wage for 2010 is $27,000.00. While they are away from the employer’s premises, they are at a fixed location used as a headquarters for their work. Nevada’s overtime laws require payment of 1 1/2 times the employee’s regular pay rate for work hours that exceed eight for the day or 40 for the week. To qualify for this exemption, an employee must meet all of the following requirements: The total annual compensation for highly compensated employees can include salary, commissioner, nondiscretionary bonuses, and other nondiscretionary compensation. You do not have to pay the employee for weeks in which he does no work. The current threshold, which has been in effect for 15 years, is $23,660 per year ($455 per week). This exemption is the most misapplied of all the exemptions listed. By way of example, a cartoonist who is told the underlying concept of a cartoon, but must reply on his/her own creative ability to express the concept would fall under this exemption. As you may have guessed, just having “computer” in the job title is not going to be sufficient to meet the requirements of this exemption. The new rule changes the current salary level for exempt employees from $23,660 per year to $35,568 annually. Employers are moving some salaried employees to hourly — with a loss of the flexibility salaried workers generally enjoy — giving raises to … Under Nevada's overtime law, when employees earn less than 1 1 / 2 times the minimum wage rate, the employees must receive 1 1 / 2 times their wages whenever they work more than 40 hours in any scheduled week or more than 8 hours in any workday, unless by mutual agreement the employees work a scheduled 10 hours per day for 4 … The salary threshold would increase by $3,000 annually over for six years, eventually reaching $57,500 in 2026. That comes out to $455 per week or (approximately) $1,971 per month. This means that in New York City, in order to classify employees as exempt under the executive/managerial or administrative exemption, the employer must pay the employee a salary of at least $1,125 per week. Employers will need to make adjustments to ensure they’re compliant with this updated rule, under the Fair Labor Standards Act, announced on September 24 by the U.S. Department of Labor. By some estimates up to 70% of employers are in violation of some provision of the Fair Labor Standards Act (FLSA). Misclassifying of employees as exempt is one of the most common violations and can be the most costly. Back in 1975, the overtime salary threshold for that exemption was the equivalent of $61,200 a year, and 62 percent of salaried workers in the U.S. were automatically eligible for overtime pay. Each class has its own requirements that must be met in order to be deemed exempt. However, this exemption only applies to employees who primarily perform office or non-manual work. The employee’s primary duty is management of the enterprise. For an employee to be exempt from receiving overtime, they must be paid more than the new threshold as well as perform certain job duties laid out in the duties test. Under Colorado’s new regulations, the state minimum salary … Further, even though the FLSA specifically delineates certain positions in this exemption, job titles are not determinative. Non-exempt employees are subject to the minimum wage and overtime provisions of the FLSA. As an exempt salaried employee, he or she must make at least $913 weekly. Reno, Nevada 89521 What does that mean? While there isn’t much guidance from the Department of Labor, what is clear is that someone who is exempt under this class must be empowered to make important decisions regarding how the business is run. The chamber last week submitted formal comments to the department outlining member's concerns. Unlike the other exemptions, outside sales employees do not have a minimum salary requirement. The final rule also institutes a higher salary threshold to be eligible for the “highly compensated employee” exemption to FLSA. The minimum salary requirement for administrative, professional, and executive exemptions increased from $455 per week to $684 per week, or $35,568 per year on January 1, 2020. jQuery(document).ready(function($){gformInitSpinner( 1, 'https://www.nevadaemployers.org/wp-content/plugins/gravityforms/images/spinner.gif' );jQuery('#gform_ajax_frame_1').on('load',function(){var contents = jQuery(this).contents().find('*').html();var is_postback = contents.indexOf('GF_AJAX_POSTBACK') >= 0;if(!is_postback){return;}var form_content = jQuery(this).contents().find('#gform_wrapper_1');var is_confirmation = jQuery(this).contents().find('#gform_confirmation_wrapper_1').length > 0;var is_redirect = contents.indexOf('gformRedirect(){') >= 0;var is_form = form_content.length > 0 && ! Therefore, as a Nevada employer, you must review the FLSA and Nevada statutes before classifying an employee as exempt. 1. Exempt employees in Nevada are usually white-collar employees, such as executive, administrative or professional employees who perform the job duties that the FLSA requires for their position. Employees making a salary over this threshold may be exempt is certain circumstances (see job duties test). Salary Threshold For part-time LOAs who do not currently meet the paid FLSA salary threshold of $684 per week or $35,568 annualized salary, departments have the following choices: Increase employee’s paid salary to meet the threshold of $684 per week, based upon the actual percentage of time worked (FTE) as noted in Workday; or The current minimum wage is likely to change on July 1, 2018 and will be based on whether or not the employee receives health benefits. 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