UPDATE: New Federal Overtime Rules Suspended a Week Before Deadline
Last week, the federal government announced changes to the overtime regulations included in the Fair and Labor Standards Act (FLSA) that will affect nearly every business owner. The most significant and most talked about change is the employee wage base.
Background: The FLSA excludes certain employees from federal minimum wage and overtime requirements. To qualify for an exemption, employees generally must: (1) be salaried, meaning that they are paid a predetermined and fixed salary; (2) be paid a salary that is at least equal to a specific threshold and (3) perform the executive, administrative, or professional duties set out in Department of Labor regulations, or the so-called duties test. These employees are considered “exempt,” and federal law does not require that they be paid the minimum wage or receive overtime for hours worked over 40.
