FLSA Requires New Minimum Salary of $913 Per Week Effective December 1, 2016

Just a reminder, effective December 1, 2016, the FLSA will require the minimum salary for salaried non-exempt workers to be $913 per week ($1826 bi-weekly) $47,476 per year – up from $455 per week or $23,600 per year.

It is of my opinion that trying to track “salaried non-exempt” is going to be confusing to employers and their employees.

Our recommendation is to change all non-exempt employees who are making less than $913 per week (gross salary) to hourly employees or increase their salary to $913 effective December 1.

Either way, you will be responsible to pay over time for any hours worked over 40 per week unless they are truly salary “exempt” (from overtime) such as outside sales employees, executive job duties such as 1) regularly supervises two or more other employees 2) has management as the primary duty of the position and 3) has genuine input as to hiring, firing, promotions and assignments; or exempt professionals such as teachers, lawyers, doctors, dentists, architects, accountants (but not bookkeepers), registered nurses (but not LPN or CN), engineers, actuaries, scientists, pharmacists, computer technicians, or administrative functions.

Ultimately, the responsibility lies with the employer to make the determination of their employee’s status. If in doubt, you can go to the following link http://www.flsa.com/coverage.html for a comprehensive summary of coverage under the FLSA. Keep in mind the document does not have the new minimum pay rates; but the rest of the information is accurate.