The Fair Labor Standards Act is the federal law which sets minimum wage and requirements for employers to pay overtime to workers. The law also establishes rules under which employees may be exempt from the overtime requirements. On March 7, 2019, the United States Department of Labor proposed a rule which would alter the current rules for exempt employees. Today’s Long Island employment law blog discusses the proposal.
Under the FLSA, employers must pay overtime to employees who work more than 40 hours in a workweek. Overtime must be 1.5 times the employee’s regular rate of pay.
But, some employees are exempt from this requirement. To be exempt, the employee must receive a minimum weekly salary and the employee’s job responsibilities must meet the definition of one of the law’s exemptions. In 2004, the Department of Labor set the salary requirement to $455 per week, and that amount has remained unchanged since then.