The Fair Labor Standards Act (FLSA) requires employers to pay employees overtime unless they meet a listed exemption. Several of the exemptions require that the employee be paid a minimum salary amount and also meet a duties test. Recently the government published regulations increasing the salary requirement to the following exemptions:
- The administrative, executive or professional exemption requires that the employee be paid a salary of at least $684 per week ($35,568 per year).
- The computer exemption requires that an employee must be paid at least $684 per week or on an hourly basis of at least $27.63 per hour.
- The highly compensated employee exemption requires that the employee be paid a total annual compensation of at least $107,432, and that total compensation must include at least $684 per week paid on a salary or fee basis.
The regulations are set to go into effect January 1, 2020.