Exempt and Non-Exempt Employees

Under the Fair Labor Standards Act (FLSA), most employers are required to pay overtime to employees who work more than 40 hours in a given workweek at a rate of one and one-half times the employee’s regular rate of pay. There are many exceptions to this general requirement for employees who perform certain types of work – most notably, for “white-collar” employees.

In March 2019, the federal Department of Labor (DOL) proposed updates to the overtime rule which increase the current minimum salary threshold for exemption, and the total annual requirement for the exemption of highly compensated employees. The DOL's proposed rule makes no changes to the duties tests required for exemption. If finalized, the new requirements would likely become effective in late 2019 or early 2020.