Fair Labor Standards Act - Law Change Effective Jan 1, 2020

Update Provided By: Susie Cirilli at Paisner Litvin LLP

​As we near the beginning of the end (of 2019), it is crucial that employers account (literally and figuratively) for changes in the law. The Department of Labor announced earlier this year that effective January 1, 2020, the minimum salary for exempt employees will increase to $684 per week ($35,568 annually). This is an $11,908 jump from the current minimum salary of $455 per week ($23,660 annually).

The Federal Regulations afford employers some relief in that up to 10% of the exempt employee’s salary may be paid in the form of a bonus, incentive or commission on a quarterly or annual basis.
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It is important to remember that salary alone is insufficient for an employee to be exempt from the minimum wage and overtime requirements of the Fair Labor Standards Act. (“FLSA”) The Act provides that employees classified as Professional, Administrative or Executive are exempt, provided that (1) the primary duty of the employee’s work is exempt, and (2) the employee meets the minimum salary amount. The following is a general overview of the primary duties for each exempt employee classification:

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