IT CHANGES THE FAIR LABOR STANDARDS ACT (FLSA) – IT EXTENDS OVERTIME RULEX TO COVER SEVERAL LONG-STANDING EXEMPTIONS
It removes the so called “white collar” exemption. It now covers executive, administrative, professional, and computer-professional employees. Each of the exemption categories mandates certain duties-– the so-called “duties test.” In addition the employee must, with very limited exceptions, be paid on a salary basis, with the salary meeting or exceeding a specified minimum amount “the salary test”. The new weekly amount is $913 per week, $476,000 per annum. The prior minimum annual salary level was $23,660 for exempt employees. There was in the prior law the highly compensated employee exemption – used to require annual compensation of at least $100,000 is now set at $134,004. This is just a taste. Check with your lawyer and or CPA for further details.
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