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FLSA’s exemption for “Highly Compensated Employees”

The United States Department of Labor recently made significant changes to the regulations concerning overtime pay for certain employees, which will become effective on December 1, 2016. This week’s article examines the changes to the FLSA’s exemption for “Highly Compensated Employees”.

Under the current version of the FLSA regulations, individuals who fall within the definition of a highly compensated employee (“HCE”) are exempt from overtime pay requirements. Generally, an HCE is an individual who is paid a total annual compensation of $100,000 or more, which includes at least $455/week paid on a salary basis. Also, the employee’s primary duties must include performing office or non-manual work, and the employee must perform at least one of the exempt duties or responsibilities performed by an employee who would be exempt under one of the “White Collar Exemptions” for bona fide executive, administrative, and professional employees. For more information on those exemptions, please refer to our earlier blog posts on this topic. Under the Final Rule, the HCE salary exemption will increase to $134,004.00/year.

Please read the fourth installment in our series titled Steps Employers Can Take To Prepare For The Changes To The FLSA Regulations. If you have questions about the upcoming changes to the FLSA regulations, or about any other employment law issues, please contact Attorney Michael P. Doherty, Andrew M. Kepple or one of our other employment attorneys at 508 541-3000.