{"id":1872,"date":"2021-06-12T21:00:29","date_gmt":"2021-06-12T15:30:29","guid":{"rendered":"https:\/\/www.complianceprime.com\/blog\/?p=1872"},"modified":"2021-06-12T21:00:29","modified_gmt":"2021-06-12T15:30:29","slug":"dol-increases-salary-threshold-for-exempt-employees-cp-blog","status":"publish","type":"post","link":"https:\/\/www.complianceprime.com\/blog\/2021\/06\/12\/dol-increases-salary-threshold-for-exempt-employees-cp-blog\/","title":{"rendered":"DOL Increases Salary Threshold for Exempt Employees"},"content":{"rendered":"

The Fair Labor Standards Act (FLSA) requires that any employee who works more than 40 hours per week must be paid at least one and one-half times their regular hourly wage for every hour they work beyond 40 hours. However, many employers operate their businesses under the collective bargaining agreement (CBA) that they have with their workers. Any worker who is covered by the CBA may be exempt from the FLSA requirements.<\/span><\/p>\n

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Recently, DOL (U.S. Department of Labor) issued a rule that will raise the minimum salary requirement to be recognized exempt from overtime under the FLSA. The rule will raise the minimum salary threshold from $23,660 annually to $47,476 annually. This will affect approximately 5.6 million non-professional employees who currently are eligible to receive overtime pay under the FLSA.<\/span><\/p>\n

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Here is an overview of the new regulations and guidelines.<\/span><\/p>\n

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“Exempt” Employees<\/span><\/h2>\n

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The DOL has revised the regulations that employers must follow when it comes to the issue of paying exempt employees. The Fair Labor Standards Act (FLSA) requires employers to pay non-exempt employees a minimum wage of not less than $7.25 per hour. Businesses with hourly employees who earn more than $23,000 per year must also comply with the FLSA’s overtime provisions, which require employers to pay time-and-a-half for hours worked more than 40 in a workweek.<\/span><\/p>\n

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To be considered as “exempt,” workers must meet all of the following breakdowns:<\/span><\/p>\n

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