Feature Image

What is the FLSA?

The Fair Labor Standards Act, more commonly known as FLSA, is a federal wage and hour law which was passed in 1938. The FLSA establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time employees in the private sector and in Federal, State, and local governments. Compliance with the FLSA is enforced by the Wage and Hour Division of the U.S. Department of Labor (DOL). 

Recently, the Department of Labor released new guidelines for positions currently classified as exempt. As of January 1, 2020, these positions must earn a higher salary if they meet certain tests that define what is considered exempt work. Whereas the current minimum annual salary is $23,660, the new threshold is $35,568.

Below you will find more general information about the FLSA and upcoming changes.  


What Has Changed with the FLSA?

Under the new rules, employees with a salary under $35,568 ($684 per week) will be designated as “non-exempt” making them eligible for overtime pay when physically working more than 40 hours within the workweek. In addition, the ‘highly compensated worker’ test and some special pay considerations have changed.

Current

 

New (Effective 1/1/2020)

$455 a week or $23,660 a year Salary Level Test $684 a week or $35,568 a year
Salary test set at $100,000 Highly Compensated Worker Test Salary test set at $107,432
Bonus was not included in threshold calculation Special Pay Allows up to 10% of minimum salary to be met by non-discretionary bonuses, incentive pay, or commissions. 

 

For questions regarding the overtime changes, please contact your HR Consultant or call Human Resources at 540/568-7247.


Helpful References for Supervisors and Employees

Back to Top