Effective January 1st, the FLSA salary threshold increased to $35,568 annually, or $684 weekly. The FLSA also clarified the standards for determining exemption status. Employers are required to analyze and determine the FLSA exemption status of each position. In the case of W-2 temporary workers, the employer is determined to be the staffing agency or the payrolling agent acting as Employer of Record. Positions are designated as either exempt or nonexempt based on three factors:
- salary level
- salary basis
- primary job duties performed
All conditions for each of these three factors must be met for the worker to be classified as exempt. The default position is to consider workers as non-exempt. Non-exempt employees are eligible to earn overtime for all hours worked beyond forty hours in a work week. Exempt employees are not. Employers are required to maintain time records for all nonexempt employees to ensure compliance with overtime provisions.
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