- Any exempt employee must be paid $47,476.00 annually ($913.00 per week for seasonal)
- Any employee earning less than this amount is NOT exempt, and therefore MUST be paid overtime for all hours worked over 40 hours a week
For Example, if you previously were paying any “exempt” employee under $47,476.00 per year, you must either:
- Raise their salary to $47,476.00 per year, OR
- Pay the employee overtime for all hours worked over 40 hours per week. The employee will no longer be considered an exempt employee.
“An exempt executive, administrative, and professional employee must meet the duties test in addition to being paid on a salary basis and at the required salary level. Therefore, if an employee only meets the duties test and not the required salary level, they would not meet the criteria necessary to be considered exempt, and would be entitled to overtime in any week they work more than 40 hours.”
The effective date of the final rule is December 1, 2016. The initial increases to the standard salary level (from $455 to $913 per week) will be effective on that date. Future automatic updates to those thresholds will occur every three years, beginning on January 1, 2020.
For more detailed information please visit the Department of Labor Website.