The statutory exemptions "signal the General Assembly's intention to exclude bona fide EAP employees from the act's protections." There are serious consequences if you inaccurately classify an employee as exempt, including paying back the overtime pay the employee was denied due to being incorrectly classified, plus fines. Below are the jurisdictions with laws that require exempt employees to have a salary basis above the FLSA threshold to be considered exempt employees as of Jan. 1, 2023. Learn Eddys story, get help with your questions, and access our free HR Encyclopedia. The final rule is available at: https://www.federalregister.gov/documents/2019/09/27/2019-20353/defining-and-delimiting-the-exemptions-for-executive-administrative-professional-outside-sales-and. The duties of each worker must be considered as part of this analysis. } While the Fair Labor Standards Act sets a federal threshold for salaried (exempt) employees, several states have their own regulations. Exemption - Blue-Collar Workers, Part 541, Exemption -Insurance Claims Adjusters, Part 541, Exemption -Financial Services Industry Employees, Part 541, Exemption -Technologists and Technicians, Part 541, Exemption -Construction Workers, Part 541, Exemption -Journalists/Reporters, Part 541, Higher Education Institutions and Overtime Pay - FLSA, Exemptions - Recreational Establishments, Seasonal Amusement, Motor Carrier Exemption, Truck Drivers, Interstate Truck Drivers, Hours Worked, Waiting Time, On-call Time, Breaks, Lunch Breaks, Sleeping Time, Training Time, Travel Time, Commute, Overnight Travel, FMLA, Medical Leave, Family Medical Leave, FMLA Military Leave Entitlements, Veteran, Armed Forces, Military, Military Family, FMLA Certification of a Serious Health Condition, FMLA Special Rules for Airline Flight Crew Employees, FMLA Son or Daughter 18 years of age or older, Leave under the FMLA for Spouses Working for the Same Employer, Leave Provisions - Military Family under the FMLA, Military Caregiver Leave for a Current Servicemember under the FMLA, Military Caregiver Leave for a Veteran under the FMLA, Joint Employment and Employer Responsibilities Under the FMLA, Independent Contractors, Joint Employment, Recreation Establishments, Amusement Parks, Grocery Stores, Supermarket, Meat Slicer, Trash Compactor, Baler, Hours Limits, Maximum Hours, Subminimum Wages, Workers With Disabilities, Subminimum Wages, Certificates Under Section 14(c) of the FLSA, Workers With Disabilities, Subminimum Wages, Commensurate Wages Under Section 14(c), Workers With Disabilities, Subminimum Wages, Hours Worked under Section 14(c) of the FLSA, Workers With Disabilities, Subminimum Wages, Personal Time, Fatigue and Delay Allowances Under Section 14(c), Piece Rates, Workers With Disabilities, Subminimum Wages, Hourly Commensurate Wage Rates Under Section 14(c), Workers With Disabilities, Subminimum Wages, Service Contracts Under Section 14(c), Workers With Disabilities, Workers With Disabilities, CRP Compliance Baseline Survey, Child Labor, Youth employment, teen employment, teen workers, teen employees, prohibited occupations, hazardous occupations, prohibited jobs, hazardous jobs, Field Sanitation Standards under OSHA, Farmworkers, Farm Employees, Agricultural Workers, Agricultural Employees, Ag Employees, Migrant Workers, Migrant Employees, Seasonal Workers, Seasonal Employees, Drinking Water, Toilets, Handwashing, Regular Rate of Pay, State and Local Scheduling Law Penalties, H-1B, Recordkeeping, H-1B dependent/willful violator, H-1B, Recruitment; industry-wide standards, McNamara-OHara Service Contract Act (SCA), Full-Time Employee under H-1B Visa Program, Job Hours and the three-Fourths Guarantee, H-2B, Inbound and Outbound transportation Expenses, and Visa and Other Related Fees, Disclosure of the Job Order and Notice of Worker Rights, Employer Obligations Under the Temporary H-2B Visa Cap Increase. Spanish ; Employment Relationship, Independent Contractors, Misclassification: 14: . 2, Joint Employment and Independent Contractors Under the Migrant and Seasonal Agricultural Worker Protection Act, Employee Polygraph Protection Act of 1988, Application of the Federal Child Labor Provisions to Amusement Parks and Recreation Establishments, Application of the Federal Child Labor Provisions of the Fair Labor Standards Act (FLSA) to Grocery Stores, The Employment of Workers with Disabilities at Subminimum Wages, How to Obtain a Certificate Authorizing the Payment of Subminimum Wages to Workers with Disabilities under Section 14(c) of the Fair Labor Standards Act (FLSA), Prevailing Wages and Commensurate Wages under Section 14(c) of the Fair Labor Standards Act (FLSA), Hours Worked and the Payment of Subminimum Wages to Workers with Disabilities under Section 14(c) of the Fair Labor Standards Act (FLSA), Incorporating Personal Time, Fatigue and Delay (PF&D) Allowances When Determining Piece Rates to be Paid Workers with Disabilities Receiving Subminimum Wages under Section 14(c) of the Fair Labor Standards Act (FLSA), Determining Hourly Commensurate Wages to be Paid Workers with Disabilities under Section 14(c) of the Fair Labor Standards Act (FLSA), The Payment of Subminimum Wages to Workers with Disabilities Who Are Employed on Federal Service Contracts Subject to the McNamara-O'Hara Service Contract Act, The 2010 National Community Rehabilitation Program Compliance Baseline Survey, Limitations on the Payment of Subminimum Wages under Rehabilitation Act Section 511, Pre-Employment Requirements for Youth with Disabilities under Rehabilitation Act Section 511, Limitations on the Payment of Subminimum Wages for All Employees under Rehabilitation Act Section 511, Adjusting Commensurate Wage Rates under a Section 14(c) Certificate after a Change in the Minimum Wage, Minimum Wages for Workers With Disabilities Under Executive Orders 13658 and 14026, Child Labor Provisions of the Fair Labor Standards Act (FLSA) for Nonagricultural Occupations, Hotel and Motel Establishments Under the Fair Labor Standards Act (FLSA), Daycare Centers and Preschools Under the Fair Labor Standards Act (FLSA), Minimum Wage, Recordkeeping and Child Labor Requirements of U.S. Law Applicable to Foreign Commercial Vehicle Operators and Helpers, Application of U.S. Labor Laws to Immigrant Workers : Effect of Hoffman Plastic decision on laws enforced by the Wage and Hour Division, The Migrant and Seasonal Agricultural Worker Protection Act, Transportation under the Migrant and Seasonal Agricultural Worker Protection Act, Field Sanitation Standards under the Occupational Safety and Health Act, The Health Care Industry and Youth Employment, The Health Care Industry and Hours Worked, The Health Care Industry and Calculating Overtime Pay, Changes in the Rules on the Employment of Minors Exempt from Compulsory School Attendance in Businesses Where Machines Process Wood Products, Stock Options under the Fair Labor Standards Act (FLSA), Overview of the Regular Rate of Pay Under the Fair Labor Standards Act (FLSA), State and Local Scheduling Law Penalties and the Regular Rate under the Fair Labor Standards Act (FLSA), Bonuses under the Fair Labor Standards Act (FLSA), Hazardous Occupations Order No. Join our free community of HR professionals. }); if($('.container-footer').length > 1){ 2023 Exempt Status Salary Threshold by City and State. Track essential employee data, digitize your manual HR processes, and improve your employee experience. Still, an employer can and should set expectations if there are business hours during which employees need to be available, what their job performance standards are, and how to meet those standards. Highly compensated employees performing office or non-manual work and paid total annual compensation of $107,432 or more (which must include at least $684 * per week paid on a salary or fee basis) are exempt from the FLSA if they customarily and regularly perform at least one of the duties of an exempt executive, administrative or professional Going forward, Pennsylvania employers will need to consider the exempt status of their EAP employees under contemporary FLSA regulations as well as the version of those regulations in effect more than 50 years ago. For instance, secretaries perform a wide variety of administrative duties, but typically cannot be classified as exempt. There are a number of pros and cons why an employer would want an employee to be exempt. The .gov means its official. 1/1/2022. } With few exceptions, the base pay of a salaried employee may not be reduced based on work performance or time spent as long as work is done. This act is the federal mandate for how to pay employees, which includes how to classify them as exempt or non-exempt from being entitled to overtime pay, among other things. Job title does not determine whether one is exempt from New York overtime rules. ~$65,478.40 (2 x Minimum Wage, Employers with 51 or more Employees). if (vTopic != null){ Outside salespeople, like door-to-door salespeople. [CDATA[/* >. The contents of this document do not have the force and effect of law and are not meant to bind the public in any way. For some additional insights from a great article, click here. $58,240 (employers with 25 or fewer employees), $62,400 (employers with 26 or more employees), $64,480 (All employers regardless of size), $58,511 (NYC, Nassau, Suffolk, Westchester), $55,341 (12/31/2022 for All other NY Workers), ~$50,740 (1.75 x Minimum Wage, All Employers 2022), ~$57,293.60 (1.75 x Minimum Wage, Employers with 1-50 Employees). Subscribe to our blog for the latest employment law news. There are other factors that need to be accounted for. else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) { Starting with Alaska, exempt employees must be paid two times the state minimum wage for the first 40 hours worked each week, excluding board or lodging from the employer. Exempt employees are exempt from FLSA regulations, so they dont earn overtime pay. Parties are exempt from overtime rules if: Employees exempt from overtime pay requirements based on professional exemption may not be subject to the same minimum salary requirements as above. Computer professionals are in their own group when it comes to exemptions. Still have questions? While this is not necessarily a firm date indeed the Fall 2021 regulatory agenda listed April 2022 as a goal to issue the NPRM this means the DOL could publish this fall its proposal for what should be done with the rule on the minimum salary for exempt status currently $684 per week, which annualizes to $35,568. Additionally, some truck drivers, agricultural workers, railroad workers, and other exemptions can be explored in this article. @media (max-width: 992px){.usa-js-mobile-nav--active, .usa-mobile_nav-active {overflow: auto!important;}} Part 541. .manual-search ul.usa-list li {max-width:100%;} A salary level of $6,500 per year, as well as meeting other standards, would qualify someone for the white-collar exemptions, according to a new final rule. .usa-footer .grid-container {padding-left: 30px!important;} $(this).next().addClass('expanded'); When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. var currentUrl = window.location.href.toLowerCase(); For the executive . #block-googletagmanagerfooter .field { padding-bottom:0 !important; } As a result of a compromise reached during recent budget negotiations, Pennsylvania repealed an administrative rule that would have substantially increased the salary threshold needed to qualify as an exempt executive, administrative and professional (EAP) employee under the Pennsylvania Minimum Wage Act (PMWA). The employees primary duty must be the performance of work requiring invention, imagination, originality or talent in a recognized field of artistic or creative endeavor. However, if someone doesnt receive a salary, it doesnt always mean theyre an exempt employee. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); Besides the research and analysis you do to classify a position as exempt or not, after that decision is made, youll need to administer pay and benefits a bit differently and set expectations around those policies and procedures. Thus, it is expected that courts will interpret the PMWA's EAP exemptions by reference to how the EAP exemptions were defined under the FLSA in 1968. .cd-main-content p, blockquote {margin-bottom:1em;} 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. Rather than simply repeal the 2020 rule (which would have restored the regulations to their pre-2020 iterations), the bill abrogated these three regulationsin their entirety: SECTION 2215.1. Please log in as a SHRM member before saving bookmarks. The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely. part 541 with an effective date of January 1, 2020. ol{list-style-type: decimal;} It might be too broad to say any whole industries are exempt from FLSA. Rather, it repealsthe entire regulatory frameworkfor defining the EAP exemptions under the PMWAregulations that have been in place since 1977. Section 13 (a) (1) and Section 13 (a) (17) also exempt certain computer employees. The list includes some special districts in states but does not include all of said districts. } What protections are there for whistleblowers? } What benefits must be offered to H-1B workers? /*-->*/. To be classified as exempt, a position must include certain duties. } p.usa-alert__text {margin-bottom:0!important;} 1/1/2021. var target = this.nextElementSibling.classList.value; California. As a reminder, under the (FLSA), all employees must be paid at least minimum wage plus overtime for all hours worked. In 2022, the minimum wage and minimum salary increased in New York. }; Below are the jurisdictions with laws that require exempt employees to have a salary basis above the FLSA threshold to be considered exempt employees as of Jan. 1, 2023. if (target.indexOf('expanded') >= 0) { Suite 400 *Note: The Department of Labor revised the regulations located at 29 C.F.R. window.onclick = function (event) { $35,568 (Current Federal) N/A. .manual-search-block #edit-actions--2 {order:2;} .paragraph--type--html-table .ts-cell-content {max-width: 100%;} Whether you manage a postings, minimum wage or paid leave program, our products cut through research time, provide proactive insights into the everchanging landscape of employment laws and reduce the risk of noncompliance. This document is intended only to provide clarity to the public regarding existing requirements under the law or agency policies. paginate.init('.myTable', options, filterOptions); With the repeal of the PMWA's EAP regulatory definitions, however, what will it take to qualify as exempt under state law? #block-googletagmanagerheader .field { padding-bottom:0 !important; } However, when a position qualifies as exempt under FLSA, you may choose to keep it as non-exempt or to change it to exempt. The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments. */. To classify someone as exempt from FLSA, employers have to ensure all of the legal qualifications are met. For more information specifically about FLSA, go to Eddys HR Encyclopedia article here. Exemption - Salary Basis, Part 541: 17H: Highly-Compensated Workers, Part 541 Exemptions hasPagination: true Washington, DC 202101-866-4-US-WAGE1-866-487-9243, Administrator Interpretations, Opinion and Ruling Letters, Resources for State and Local Governments, https://www.federalregister.gov/documents/2019/09/27/2019-20353/defining-and-delimiting-the-exemptions-for-executive-administrative-professional-outside-sales-and, Police, Fire Fighters, Paramedics & Other First Responders. The minimum salary for exempt employees in New York City remains at $1,125 per week or $58,500 per year. New York City has the highest minimum wage requirements, and other parts of New York are working to match the Citys existing requirements. To make this decision about positions in your organization, its important to do your own research and verify the process with appropriate counsel (e.g. [CDATA[/* >*/. $(document).ready(function ($) { If you are interested in learning more about non-exempt employees, check out Eddys HR Encyclopedia article here. @media only screen and (min-width: 0px){.agency-nav-container.nav-is-open {overflow-y: unset!important;}} .usa-footer .container {max-width:1440px!important;} The remaining parts of New York State, not including New York City, increased the minimum wage from $12.50 to $13.20 an hour in 2022. What are the requirements to participate in the H-1B1 program? Find more information from the DOLs Wage and Hour Division,which includes exempt salary information on: This Employment Law News blog is intended for market awareness only, it is not to be used for legal advice or counsel. In the context of FLSA and using regulatory language from the Department of Labor, an administrative positions main duty is office or non-manual work directly related to the management or business operations of the company or customers. All exempt employees must be paid a salary. What records must an H-1B employer make available to the public? The Trump. [CDATA[// >