Overtime exemption has always been a three part test:
- Does the employee meet a “duties” test to be exempt from overtime? The main types of jobs (depending on the duties) that are exempt are: executive, administrative, professional and outside sales.
- The employee receives the same amount of base salary in each check (there are very rare exceptions).
- The employee receives a minimal amount in salary, currently the amount is $455 per week or $23,660 per year. On January 1, 2020, the minimum amount that must be paid to an employee to be able to assert that they are exempt from overtime (if they meet #1 and #2 above), will increase to $684 per week or $35,568 per year.
Note that highly compensated employees do not have to meet every part of the duties test. A highly compensated employee will be exempt from overtime “if the worker’s primary duty is performing office/non-manual labor and the worker "customarily and regularly performs any one or more of the exempt duties" of an executive, administrative, professional employee or outside salesperson. Currently, to be defined as “highly compensated” an employee must earn at least $100,000 per year. On January 1, 2020, the threshold to be classified as a highly compensated employee will increase to $107,432 per year.
If you have any questions regarding the new regulations, contact any member of the Wilentz Employment Law Team at 732-352-9858.
The postings on this blog were created for general informational purposes only and do not constitute legal advice or a solicitation to provide legal services. Although we attempt to ensure that the postings are complete, accurate, and up to date, we assume no responsibility for their completeness, accuracy, or timeliness. The information in this blog is not intended to create, and receipt of it does not constitute, a lawyer-client relationship. Readers should not act upon this information without seeking professional legal counsel.
This blog may contain links to independent third party websites and services, including social media. We provide these links for your convenience, and you access them at your own risk. We have no control over and do not monitor the content or policies (including privacy policies) of these third-party websites and have no responsibility for, and no liability with respect to, their content, accuracy, or reliability. Unless expressly stated, we do not endorse any of the linked websites or any product, service, or publication referenced herein or therein. We will remove a link to any site from this blog upon request of the linked entity.
We grant permission to readers to link to this blog so long as this blog is not misrepresented. This site is not sponsored or associated with any other site unless so identified.
If you wish for Wilentz, Goldman & Spitzer, P.A., to consider representing you, please obtain contact information from the Contact Us area of this blog or go to the firm’s website at www.wilentz.com. One of our lawyers will be happy to discuss the possibility of representation with you. However, the authors of Wilentz blogs are licensed only in New Jersey and/or New York and do not wish to represent anyone who viewed this site in a state where the site fails to comply with all laws and ethical rules of that state.