Quick Answer: Do Exempt Employees Have To Be Paid Minimum Wage?

What is the salary limit for exempt employees?

The rule increases the salary threshold for employees exempt under the executive, administrative, and professional exemptions (the “white collar exemptions”) from $455 per week (or $23,660 annually) to $684 per week (or $35,568 annually)..

Can salary employees leave early?

As a general rule exempt employees are paid a salary and don’t have to be paid overtime no matter how many hours they work. … Exempt employees who are late or who need to leave work early – for doctor’s appointment, child care, whatever – cannot have their pay docked for missing a couple of hours of work.

What is minimum exempt income?

The minimum salary requirement for exempt employees according to the Fair Labor Standards Act (FLSA) is $23,600 per year or $455 per week. … Salary level is one of three tests used to determine employee exempt status. The other two are the salary basis test and job duties test.

What is the new federal law on salaried employees?

The new rule requires that exempt salaried employees must be paid at least $684 per week, or $35,568 annually. Employees who do not meet this salary level must be classified as non-exempt, and be paid overtime for all hours worked over 40 in a workweek. Employers have two compliance options: Raise Salary.

What does salary exempt mean?

An exempt employee is a term that refers to a category of employees set out in the Fair Labor Standards Act (FLSA). Exempt employees do not receive overtime pay nor do they qualify for minimum wage. When an employee is “exempt” it primarily means that they are exempt from receiving overtime pay.

What is the minimum pay to be considered salary?

The employee must receive the full salary of at least $684 per week if paid on a weekly basis. If the employee is paid every two weeks (bi-weekly), the minimum salary required is $1,368. If the employee is paid twice a month (semi-monthly), the minimum salary required is $1,482.

What qualifies as an exempt employee 2020?

Employees who are classified as exempt must receive a salary of at least $684 per week by January 1, 2020. However, many employers don’t have workweeks that will begin on January 1, 2020, which is a Wednesday.

Do salaried employees have to make up time?

Exempt employees need not be paid for any workweek in which they perform no work. … If the employee is ready, willing and able to work, deductions may not be made for time when work is not available. Part-Day Absences. The federal courts have held that you cannot dock pay for absences of less than a day.

Can you require exempt employees to use PTO for partial day absences?

Exempt employees are required to use their PTO hours when they are absent from work for partial or full days. … The trial court granted summary judgment in favor of General Atomics, finding the partial-day PTO deductions lawful. On appeal, the California Court of Appeal affirmed the decision.

A week is defined as a fixed time period of 168 hours, or seven consecutive 24-hour days. Even if you are paid every two weeks, if you qualify for overtime, you can’t be required to work 60 hours one week and 20 hours the next, without being paid overtime for the week you worked beyond 40 hours.

Does minimum wage apply to exempt employees?

Federal law establishes a minimum salary of $684 per week for the professional exemption. Employers seeking to classify employees as exempt from overtime should ensure employees meet both federal and state exemption criteria.

How many hours does an exempt employee have to work to get paid?

Most employers expect their exempt employees to work the number of hours necessary to get their jobs done. It doesn’t matter if that takes more or fewer than 40 hours per week. Even if your exempt employee works 70 hours in a week, you are still only required to pay them their standard base salary.