Which Employees Are Affected by the New FLSA Rules?

Q: Which employees are affected by the new FLSA rules? What about part-time employees?

A: Effective December 1, 2016, the new rule will apply to all employees who were previously exempt under the White Collar Exemptions and subject to the minimum salary threshold.

Certain white collar employees, such as some of those in sales, bona fide teachers, doctors, lawyers, and business owners, were not subject to the same (or any) minimum salary threshold previously, and that has not changed. All other employees classified under a White Collar Exemption must make at least $913 per week, or $47,476 per year, when the new rule goes into effect.

The salary threshold will not fluctuate based on the number of hours worked, nor is there any pro-rating, so part-time and full-time employees will be subject to the same rule.

As a reminder, to qualify as exempt, employees who meet the minimum salary threshold must also be paid on a salary basis – meaning their pay doesn’t fluctuate based on number of hours worked or the quantity or quality of their work – and they must pass the duties test for at least one of the FLSA’s exemption categories.

For more information and to learn how GTM keeps clients compliant with wage and labor laws, contact us at (518) 373-4111.