For an hourly part-time employee - what happens if they dont work the same number of hours each week and some weeks they are below the salary threshold and some weeks they are above it? #block-googletagmanagerfooter .field { padding-bottom:0 !important; } The top employee benefits companies are focusing on Dive Insight: Plans to raise the FLSA white-collar exemption threshold have been in the works for more than a year. On December 31, 2021, the minimum wage is increasing in every region except New York City. Federal law establishes a minimum salary of $684 per week for the professional exemption. This question is for testing whether or not you are a human visitor and to prevent automated spam submissions. When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. 13. Who should you contact regarding agency or higher education institution specific questions? To illustrate, suppose an employees hours of work vary each week and the agreement with the employer is that the employee will be paid $480 a week for whatever number of hours of work are required. Overtime-eligible employees must be compensated with overtime pay or compensatory time for all hours worked over 40 in a single workweek. /*-->*/, New: Interactive Handy Reference Guide to the Fair Labor Standards Act (PDF), (For best printout, see the PDF version.) An agency within the U.S. Department of Labor, 200 Constitution Ave NW Was this article useful? Filing a comment with the Ombudsman neither extends the maximum time period for contesting the assessment of a penalty, nor takes the place of filing the response required to secure an administrative hearing on a penalty. }); if($('.container-footer').length > 1){ The Wage and Hour Division (WHD) of the U.S. Department of Labor (DOL) administers and enforces the FLSA with respect to private employment, State and local government employment, and Federal employees of the Library of Congress, U.S. The new salary threshold is $958.30 per week meaning that if the position calls for the employee to work 40 weeks out of the year, then the ability to exempt the position from WMWA would depend on whether or not the employees weekly salary exceeds $958.30 per week. L&I Administrative Policy ES.A.9.5; WAC 296-128-530(2)(a). You will want to change them to overtime eligible only for the week when the furlough occurs. For those who have access to the Internet, further information may also be obtained on WHDs Internet Home Page which can be located at the following address:www.dol.gov/agencies/whd. Employees who lack a high school diploma, or who have not attained the educational level of the 8th grade, can be required to spend up to 10 hours in a workweek engaged in remedial reading or training in other basic skills without receiving time and one-half overtime pay for these hours. Where there are differences between the state and federal overtime rules, the employer must follow the rule that is most favorable to the worker. An official website of the United States government. Employees of firms which are not covered enterprises under the FLSA still may be subject to its minimum wage, overtime pay, recordkeeping, and child labor provisions if they are individually engaged in interstate commerce or in the production of goods for interstate commerce, or in any closely-related process or occupation directly essential to such production. Please purchase a SHRM membership before saving bookmarks. Hospitals and residential care establishments may adopt, by agreement with their employees, a 14-day work period instead of the usual 7-day workweek if the employees are paid at least time and one-half their regular rates for hours worked over 8 in a day or 80 in a 14-day work period, whichever is the greater number of overtime hours. What are the split-level pay ranges under the WMWAs new salary threshold? Flagstaff: $12.80 per hour: This is a $0.65 increase from the 2021 rate of $12.15 per hour. 19. All employees that hold positions determined to be covered under the mandatory overtime provisions of the FLSA are covered. If an agency has already determined that a position meets the exemption criteria and there have been no substantive changes to the position duties since it was last reviewed, is there any reason why the agency would need to review it again before changing the employee to overtime exempt once they reach the salary threshold? However, where employers already provide compensated breaks, an employee who uses that break time to express milk must be compensated in the same way that other employees are compensated for break time. The FLSA and the State Minimum Wage Act exempt employees who work in a bona fide executive capacity from the overtime pay requirements. If the employee works 60 hours, the regular rate is $8.00 ($480 divided by 60 hours). L&I Administrative Policy ES.A.9.5; WAC 296-128-530(2)(a); See also for guidance attached DOL Fact Sheet. 5. $12.00. A covered enterprise is the related activities performed through unified operation or common control by any person or persons for a common business purpose and . What's the Overtime Threshold? To be classified as exempt from New Yorks overtime requirements, executive and administrative employees must meet minimum salary requirements and satisfy certain duties tests. Unless exempt, employees covered by the Fair Labor Standards Act must receive at least time and one-half their regular pay rate for all hours worked over 40 in a workweek. } Illinois. Among these are: More detailed information on the FLSA and other laws administered by WHD is available by calling our toll-free help line 1-866-4US-WAGE (1-866-487-9243). .dol-alert-status-error .alert-status-container {display:inline;font-size:1.4em;color:#e31c3d;} L&I also updated its EAP duties tests to more closely align with the federal standards. A new rate increase will be announced and be effective on July 1, 2022. Employers with fewer than 50 employees are not subject to the FLSA break time requirement if compliance with the provision would impose an undue hardship. p.usa-alert__text {margin-bottom:0!important;} whose annual gross volume of sales made or business done is not less than $500,000 (exclusive of excise taxes at the retail level that are separately stated); or, is engaged in the operation of a hospital, an institution primarily engaged in the care of the sick, the aged, or the mentally ill who reside on the premises; a school for mentally or physically disabled or gifted children; a preschool, an elementary or secondary school, or an institution of higher education (whether operated for profit or not for profit); or, their cash wages from one employer in calendar year 2010 are at least $1,700 (this calendar year threshold is adjusted by the Social Security Administration each year); or. Whether compliance would be an undue hardship is determined by looking at the difficulty or expense of compliance for a specific employer in comparison to the size, financial resources, nature, and structure of the employers business. If you are represented, employers and employees should reviewcollective bargaining agreements for specific requirements concerning work period designations and overtime eligibility. WHD enforcement of the FLSA is carried out by investigators stationed across the country. The exemptions provided by FLSA Section 13(a)(1) apply only to "white-collar" employees who meet the salary and duties tests set forth in the Part 541 regulations. Visit Here. }); if($('.container-footer').length > 1){ How can employers avoid salary compression when raising the minimum salary for exempt employees under the revised overtime regulations? Eligibilityfor each employee them to overtime eligible only for the professional exemption be filed designations and eligibility. 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