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Which Employees Does the new FLSA rule affect?

Posted by Eric Daniel on Jul 1 2016

Common customer question #4 Does the new FLSA rule affect all exempt employees? What about part-time employees? Effective December 1, 2016, the new rule will apply to all employees who were previously exempt under the White Collar Exemptions and subject to the minimum salary threshold.

Certain white collar employees, such as some of those in sales, bona fide teachers, doctors, lawyers, and business owners, were not subject to the same (or any) minimum salary threshold previously, and that has not changed. All other employees classified under a White Collar Exemption must make at least $913 per week, or $47,476 per year, when the new rule goes into effect.

Stack of payroll paperwork


The salary threshold will not fluctuate based on the number of hours worked, nor is there any pro-rating, so part-time and full-time employees will be subject to the same rule.

As a reminder, to qualify as exempt, employees who meet the minimum salary threshold must also be paid on a salary basis – meaning their pay doesn’t fluctuate based on number of hours worked or the quantity or quality of their work – and they must pass the duties test for at least one of the FLSA’s exemption categories.

FLSA Guide

Topics: Common Questions

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As HR professionals, we are most interested in the intersection of the HR practice, technology and business results in today’s organizations. We have a strong interest in areas like recruiting, payroll, benefits, and ACA management, and the technology that manages these areas of interest.  We also keep an eye towards the thousand other areas that impact HR Generalists at every level (VP, Director, Manager, etc.). This Blog does just that.

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