In response, employers everywhere readied themselves for a potentially seismic shift. Brown noted that taking some initial steps sooner rather than later can go a long way toward triaging potential issues and creating a smoother transition plan. Need more information or looking for a custom solution? The changes are summarized below: To qualify for the administrative, professional, and executive exemptions in California, employees must meet certain salary and duties tests and must be paid at least twice the state minimum hourly wage based on a 40-hour week. This fact sheet provides information on the salary basis requirement for 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. .agency-blurb-container .agency_blurb.background--light { padding: 0; } Non-exempt employees are entitled to overtime pay at one and one-half (1 ) times their hourly rate for all hours worked in excess of This is calculated by dividing the total pay for employment (except for the statutory exclusions noted above) in any workweek by the total number of hours actually worked. DURABOX products are manufactured in Australia from more than 60% recycled materials. Critically, the nonexempt classification is not a reflection of the importance of a position. .dol-alert-status-error .alert-status-container {display:inline;font-size:1.4em;color:#e31c3d;} Fixed Sum for Varying Amounts of Overtime: A lump sum paid for work performed during overtime hours without regard to the number of overtime hours worked does not qualify as an overtime premium even though the amount of money paid is equal to or greater than the sum owed on a per-hour basis. It is important to note that employers must follow both state and federal laws.. Types of employees that may be designated as exempt under Minnesota law. } $(document).ready(function () { An employee who works for less than 24 hours in a shift, and is allowed to sleep or engage in other personal activities when not busy during that shift, shall be compensated for all hours of their shift, whether they sleep/engage in said activities or not. may be used to satisfy up to 10 percent of the standard salary level. For additional information, visit our Wage and Hour Division Website: http://www.dol.gov/agencies/whd and/or call our toll-free information and helpline, available 8 a.m. to 5 p.m. in your time zone, 1-866-4USWAGE (1-866-487-9243). Subject to exceptions listed below, an exempt employee must receive the full salary for any week in which the employee performs any work, regardless of the number of days or hours worked. These penalties can be up to $1,000 per violation. to ensure accurate records is a good idea if you plan on reclassifying employees. Youll [], The Great Resignation may have subsided, but it still carries a long-term impact. While the act does not require any particular format for these records, a specific set of information is required to be kept recorded. Federal child labor provisions authorized by the FLSA ensure that young employees are able to work in a safe environment that does not jeopardize their health, well-being, or educational opportunities. KROSSTECH is proud to partner with DURABOX to bring you an enormous range of storage solutions in more than 150 sizes and combinations to suit all of your storage needs. If employers decide to reclassify employees to nonexempt status, they will need to track affected workers' work time and pay overtime premiums for all hours worked beyond 40 in a workweek. When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. These are available at no cost from your local office of the Wage and Hour Division of the Department of Labor. An agency within the U.S. Department of Labor, 200 Constitution Ave NW In addition, employees who will be required to track their hours for the first timeas well as their managerswill need training on time-keeping procedures, she added. If the employee is paid an agreed sum for a single job, regardless of the time required for its completion, the employee will be considered to be paid on a fee basis. A fee payment is generally paid for a unique job, rather than for a series of jobs repeated a number of times and for which identical payments repeatedly are made. To learn more about FLSA Employee Classification Guidelines, how to classify employees, and the associated '"tests" with FLSA status, click here. Under these tests, it is possible for a primary duty to occupy less than 50 percent of the employee's time. Find the latest news and members-only resources that can help employers navigate in an uncertain economy. If an actual practice is found, the exemption is lost during the time period of the deductions for employees in the same job classification working for the same managers responsible for the improper deductions. Looking for ways to stay up to date on employment laws and small business news? But its up to organizations to wield it in []. To qualify for the white-collar exemptions, employees must perform certain duties, be paid on a salary basis and meet a minimum salary threshold. Please enable scripts and reload this page. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRMs permission. Generally, the definition of hours worked includes all the time during which an employee is required to be on the employers premises, on duty, or at a prescribed workplace. Averaging of hours over two or more weeks is not permitted. The content on this blog is "as is" and carries no warranties. Please log in as a SHRM member. For the computer professional employee exemption, the employee may be paid by salary (as long as it is at least $684 per week) or by the hour (as long as it is at least $27.63 per hour). Deductions from pay are permissible when an exempt employee: is absent from work for one or more full days for personal reasons other than sickness or disability; for absences of one or more full days due to sickness or disability if the deduction is made in accordance with a bona fide plan, policy or practice of providing compensation for salary lost due to illness; to offset amounts employees receive as jury or witness fees, or for military pay; for penalties imposed in good faith for infractions of safety rules of major significance; or for unpaid disciplinary suspensions of one or more full days imposed in good faith for workplace conduct rule infractions. Remember this is not official legal advice. Each of the three white-collar exemptions has slightly different criteria: Under federal law and laws in most states, an employee's exempt status is determined by the employee's primary duties and whether those duties are exempt, said Robert Boonin, an attorney with Dykema in Ann Arbor, Mich. Save my name, email, and website in this browser for the next time I comment. There are some exceptions. To be considered "exempt," these employees must generally satisfy three tests: Note: There are also exemptions for outside sales and computer professional employees. Payments which are not part of the regular rate include pay for expenses incurred on the employer's behalf, premium payments for overtime work or the true premiums paid for work on Saturdays, Sundays, and holidays, discretionary bonuses, gifts and payments in the nature of gifts on special occasions, and payments for occasional periods when no work is performed due to vacation, holidays, or illness. However, a "special" minimum wage of $4.25 per hour applies to certain employees under the age of 20 during their first 90 consecutive calendar days of employment. "Clearly the department is primed to increase the salary level," Boonin said. Learn how integrated behavioral health rooted in primary care is key to supporting employees mental and physical well-being. .table thead th {background-color:#f1f1f1;color:#222;} WebThe current federal minimum wage is $7.25 hour. [CDATA[/* >