Recently, the U.S. Department of Labor updated the rule regarding overtime pay for salaried workers under the Fair Labor Standards Act (FLSA). Beginning January 1, 2020, the minimum salary an employee must be paid to be exempt from overtime is increasing from $23,660 ($455 per week) to $35,568 ($684 per week). Workers who do not earn $684 per week will be eligible for at least time and one half their regular pay rate for all hours worked over 40 in a work week.
Now, just because an employee is paid $684 per week does not mean they are automatically exempt from overtime pay—an employee’s job duties and level of authority must also meet several tests. Otherwise, they will be entitled to overtime pay. The FLSA provides a white-collar exemption from both minimum wage and overtime pay for executive, administrative, professional, computer and outside sales employees. It is important to note that job titles alone do not determine exempt status.
Employers should carefully review the updated rule along with your employees’ specific job descriptions, duties and compensation packages to determine if all the criteria for the white-collar exemption are met. It may be prudent to consult with a human resources professional and/or legal counsel to ensure compliance with the rule should you have any questions.
Central Region Agronomists:
John Daniels, agronomist – jdaniels@usga.org
Zach Nicoludis, agronomist – znicoludis@usga.org
Information on the USGA’s Course Consulting Service