Beginning December 1, 2016, the minimum salary employees must earn in order to qualify for the FLSA overtime exemption will increase to $913 per week or $47,476 per year.
- The minimum salary requirement will increase every three years.
- The qualifying job duties for exempt employees have not changed.
What should employers do?
- Identify those employees with salaries under $47, 476.
- Increase salaries of employees to meet the threshold, or change these salaried employees to nonexempt, hourly wage earners, eligible for overtime.
- Review salaries paid to exempt employees annually to ensure compliance with FLSA or state requirements.
California’s salary overtime exemption is two times the state minimum wage. The California requirement will surpass the FLSA requirement when the minimum wage increases to $12 per hour on January 1, 2019.
- Note: Local California minimum wages that are higher than the state minimum wage have no impact in determining the exempt status of employees.