on July 01, 2016 Common Questions

Which Employees Does the new FLSA rule affect?

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

Paul Hardin

Paul Hardin is President of Moulton & Hardin, Inc. As an expert in both Employee Benefits and Workforce Management, Paul studies the relationship between all aspects of Human Capital Management, with an emphasis on Benefits Management, ACA, and how an HCM platform is invaluable for employers.

Want to learn more about how we can help you solve all of your HR Management problems?