The Fair Labor Standards Act (FLSA) is a federal law that聽establishes minimum wage, overtime pay,聽record keeping, and youth employment standards. 聽All employers in the private sector and in Federal, State, and local governments must abide by this law.
Earlier this year, the U.S. Department of Labor updated regulations governing聽exemptions聽to the Fair Labor Standard Act鈥檚 (FLSA鈥檚) overtime pay requirements for executive, administrative, and professional employees (known as the 鈥渨hite collar鈥� exemptions).聽
Under the FLSA regulations, employees are either designated as nonexempt hourly employees and eligible for overtime pay, or as exempt salaried employees who are not eligible to receive overtime pay.
To qualify a position as exempt, an employee must satisfy all three tests below:
Nonexempt employees are eligible for overtime pay at time-and-one-half for any hours worked over 40 hours per week.