Effective Dec 1st, 2016, the Department of Labor will require employers to pay their workers, earning less than $47,476 per year ($913/week), overtime pay when they work more than 40 hours/week. Up to 10% can be from bonuses/incentive pay if done at least quarterly.
White collar workers who meet the wage ($47,476) and duties test (defined by DOL)
White collar workers who are highly compensated earning at least $134,004 only have to meet a single duty.
Individuals who own at least 20% of the equity interest/stock and actively participate in the business.
Exemptions from both the minimum wage and the overtime provisions of the FLSA are provided for “white collar'' workers: administrative, executive, professional, outside sales, computer professional, and highly compensated employees. Exempt Job Duties:
Administrative: Office or non-manual work, which is directly related to management or general business operations of the employer or the employer’s customers, and a primary component of which involves the exercise of independent judgment and discretion about matters of significance.
Executive: Supervises two or more other employees where the primary duty is management that includes a genuine input into other employees’ job status (hiring, firing, assignments, etc.). This determination is made case-by-case, as each leaves room for interpretation. As a rule of thumb, an employee working exempt executive duties is “in charge” or considered “the boss”.
Professional: Includes lawyers, physicians, teachers, architects, registered nurses and other employees performing work requiring advanced education or training. These typically are intellectual jobs requiring specialized education and involving the use of discretion and judgment. This also includes creative professionals such as writers, journalists, actors, and musicians. Typically such jobs require imagination, talent, and some unique contribution to the employer.
Outside Sales: Primary duty must be making sales or obtaining orders or contracts for services or for the use of facilities for which a consideration will be paid by the client or customer; and must be customarily and regularly engaged away from the employer’s place or places of business.
Computer Professional: Must be employed as a system analyst, programmer, software engineer, or other similarly skilled worker in the computer field; and primary duties must consist of the application of systems analysis techniques and procedures including consulting with users to determine hardware, software, or system functional specifications; the design, development, documentation, analysis, creation, testing, or modification of computer systems or programs including prototypes based on and related to user or system design specifications; the design, documentation, testing, creation, or modification of computer programs related to machine operating systems; or a combination of the aforementioned duties, the performance of which requires the same level of skills.
Highly Compensated Employees: Must perform office duties on non-manual work; and must perform at least one of the duties of an exempt executive, administrative, or professional employee identified in the standard tests for exemptions.