Do you have salaried employees making less than $684/week? You may be breaking the law.
As we have reported months ago, beginning January 1, 2020 the salary portion of the test increased to $684/week.
As an overview, the Fair Labor Standards Act (FLSA) applies to most Florida employers. The FLSA generally requires that most employees receive overtime pay for all hours worked over 40 in a workweek. However, this law provides an exemption from both minimum wage and overtime pay for employees employed as bona fide executive, administrative, professional and outside sales employees. These three types of exemptions are commonly called the “White Collar” Exemptions. To qualify for exemption, employees generally must meet certain tests regarding both their job duties and they also must be paid on a salary basis at not less than $684 per week. Florida employers may use nondiscretionary bonuses and incentive payments (including commissions) paid on an annual or more frequent basis, to satisfy up to 10 percent of the standard salary level. Job titles do not determine exempt status. In order for an exemption to apply, an employee’s specific job duties and salary must meet all the requirements of the Department of Labor’s regulations.
What does this mean to your Florida business? It means that if you have an employee who is making a salary of less than $684/week ($35,568 a year) then they will not meet the salary portion of the test. There are various options for your business to come into compliance, but you must act fast. If you are just now realizing that you have a salaried employee making less than the new required minimum salary in order to comply with the requirements, you can contact our law office and we can assist you in becoming compliant with the law.
You can call us at 1-772-465-5111.