The Fair Labor Standards Act (FLSA) is also known as the federal Wage and Hour Law. This law regulates minimum wage, overtime, equal pay, recordkeeping, and child labor. According to the FLSA, employees are classified as exempt or non-exempt from minimum wage and overtime. In some states, there are different wage and hour laws that protect employees more than the FLSA.
As you may have already read about the FLSA laws that are coming up, we would like to give you a quick guide to make sure you are prepared for the changes effective December 1, 2016.
- Applies to all exempt and non-exempt salary employees who work 40 hours in a work week.
- Highly compensated employees exemption increases from $100,000 per year to $134,004 per year.
- Minimum salary requirements for others will increase from $23,660 a year to $47,476 per year.
- There will be automatic adjustments to the minimum salaries every 3 years.
- Employers are able to use bonuses, incentives, and commission to adhere to the new law by up to 10 percent of the minimum required.
For more information regarding the new FLSA Overtime Payment Law, click on the links below for more information.