Exemption for Professional Employees Under the Fair Labor Standards Act (FLSA)
Highly Compensated Employees
Last week on our weekly newsletter, we talked about the Outsides Sales Exemption to the salary compensation for overtime rules. As a reminder, I listed the exemptions to paying someone overtime below.
Executive Exemption
Administrative Exemption
Professional Exemption
Computer Exemption
Outside Sales Exemption
Highly Compensated Exemption
This week we're going to talk about the Highly Compensated Employee exemption for overtime.
The last few weeks we've been covering the different rules to exempt your employees from overtime. Based on a recent change the Department of Labor made on those rules that go into effect January 2020.
The last one we are going to talk about and probably the one with the most limited use is the highly compensated employee rule. The highly compensated employee must be compensated at a total of $107,432 or more per year. Compensation including salary, benefits and perks. The $107,432 must include a minimum of $684 in salary per week as the other rules
So not very many people get exempt for this overtime rule. Not many companies are going to make the decision to make someone a highly compensated employee just to exempt them from overtime. So a very niche rule
If you ever have any questions about this rule or the other rules we talked about the last few weeks reach out to me at jasoncavness@cavnessHRcom.
I ask you to check out our cavnessHR podcast on most podcast platforms, where we talk to small business owners, founders and people who help them succeed. Also our co-founder Daniella Young will soon be launching her Hacking Culture podcast. Where she will be talking to business leaders about the importance of culture. Also, we ask you to sign up for our waitlist for cavnessHR platform.
Thanks for your time today and remember to be great every day.
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