The Department of Labor (DOL) announced the final rule on changes to the “white collar” exemptions under the Fair Labor Standards Act (FLSA) on May 18, 2016. The final rule is effective Dec. 1, 2016.
To qualify for certain white collar exemptions, an employee must meet a salary basis test, a salary level test and a duties test. An employee must meet all three tests in order to be exempt from FLSA minimum wage or overtime pay requirements.
The final rule only changes the minimum salary threshold required in order to satisfy the administrative, executive and professional employee exemptions. The final rule also increases the salary threshold for highly compensated employees. Read Full Story
