Employer Law Blog
October 13, 2016
READY FOR 12/1? Take the Exemption Tests
The Department of Labor’s Final Rule on white collar exemptions takes effect on December 1, 2016. Are you ready? You can answer this question with three simple tests. An employee must pass all three tests to be eligible for exemption from overtime pay. 1. The Salary Basis Test First, the exempt employee must be paid on a salary basis rather than an hourly basis. The salary must not be subject to reduction based on quality or quantity of work. 2. The Salary Level Test Second, the employee’s salary must meet the minimum salary lever. Currently, the minimum salary level is $455 per week, which is $23,660 per year. On December 1, that minimum salary level will increase to $913 per week, which is $47,476 per year.