The US Department of Labor has announced a new salary test for the key 'white collar" exemption from overtime requirements, increasing the qualifying salary to $35,568 per year. It seems like a good time for a refresher quiz on these important, and often misunderstood exemptions, and related legal requirements.
1. It is not necessary to provide unpaid breaks or lunch periods to employees in Illinois so long as you are consistent in this policy.
2
.
Under the new DOL rules if an employee makes over $35,568 per year, it is permissible to pay the employee on an hourly basis and not pay that employee overtime.
3.
In order to be considered exempt under the "white collar" exemptions, under either the new rules or the old rules, it is necessary for the employee to supervise at least two other individuals.
4.
Under the new rules if an employee holds a professional degree they can be classified as exempt even if they are not paid a salary of at least $35,568 per year.
5.
Under the new rules, exempt employees, who are paid a salary of over $35,568 per year, can be "docked" pay on an "hour by hour" basis so long as careful records are kept and they have forms of paid leave to use for these docked time periods.
6. In order to be considered exempt under the "white collar" exemptions, under either the new rules or the old rules, it is necessary that the employee have a managerial title and sufficient authority to back up that title.
7.
It is not necessary to supervise "two or more" employees to qualify for the "administrative" exemption from overtime under the FLSA.
8.
It is not necessary to supervise "two or more" employees to qualify for the "professional" exemption from overtime under the FLSA.
9.
The FLSA has an overtime exemption for "inside sales" employees that remains unaffected by the new rules.
10.
The FLSA has an overtime and minimum wage exemption for "outside sales" employees that remains unaffected by the new rules.
Answers next week in MMM!
