Most employees covered by the Fair Labor Standards Act must be paid at least one-and-one-half times their regular rate of pay for any hours they work beyond 40 in a workweek. An employer who requires or permits an employee to work overtime is generally required to pay the employee premium pay for such overtime work.

FLSA, however, has a white-collar exemption that excludes certain executive, administrative and professional employees from these overtime mandates, as well as federal minimum wage requirements. In part, and under existing law, to qualify for this exemption a white-collar employee generally must be salaried and be paid at least a specific salary threshold, which is $455 per week (the equivalent of $23,660 annually for a full-year employee), and primarily perform executive, administrative or professional duties, as provided in the U.S. Department of Labor’s regulations (the “duties test”). (Job titles are not dispositive of an employee’s status.) These current regulations also contain a diminished duties test for certain employees who receive total annual compensation of $100,000 or more and are paid at least $455 per week.

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