As many are aware, amendments to the Fair Labor Standards Act (FLSA) will take effect this January. One of the critical changes is the increase in the salary threshold, which will make many more workers eligible for overtime pay. By raising the threshold, those who make less than $913 may be entitled to overtime compensation if they work more than 40 hours in any one work week. While this change is significant, it is also important to examine the other components of what makes a worker exempt and thus not entitled to overtime pay, regardless of how many hours they work.
Generally, 3 types of white collar exemptions exist that are affected by the salary threshold. These include the executive, administrative and professional exemptions. An employer determines if a worker falls into one of these categories by reviewing their duties. For example, the executive exemption to apply – you must be in a position of leadership. This may include managing a department, routinely overseeing at least two employees, and have the authority to hire and fire, or be in a role where your recommendations are given weight. The administrative exemption applies where your duties are directly related to the managment or general business operations of the employer. The professional exemption applies to the job duties of the traditional “learned professions” such as doctors, lawyers, dentists, architects and teachers.
If you fall into one of these exempt categories, and you make more than the salary threshold, you may not be entitled to overtime pay.
For more information or if you have any wage and hour questions, please contact the dedicated Atlanta wage and hour lawyers at Buckley Beal, LLP for an immediate consultation.