Full Service Payroll and HR Outsourcing Services in Kalamazoo, Michigan
Login Employer & Employee
(269) 202-8434 Call Us Today
  • Home
  • Our Solutions
    • Payroll Solutions
    • HR Solutions
    • Time & Attendance
    • Background Checks
    • Workers' Compensation
    • Labor Law Poster Services
  • About Us
    • Testimonials & Reviews
  • Areas We Serve
  • Blog
  • Useful Info
  • Contact Us

Facebook Twitter LinkedIn GMB Yelp YouTube Refer a Client

Full Service Payroll & HR Outsourcing Services
Login
  • Background Checks & Drug Screening (Schedule a Screening)
  • Timekeeping Center (Login to Time & Attendance Portal)
  • HR Center Login
  • Login (Employer & Employee)

PROPOSED INCREASE TO FLSA SALARY TEST THRESHOLD

On March 7, 2019, The US Department of Labor issued a proposed rule to raise the salary level test threshold of the Fair Labor Standards Act (FLSA) to $679 per week, or $35,308 per year. The current salary test threshold is set at $455 per week, or $23,660 per year. The FLSA salary level test indicates that any employee who earns under the threshold amount is not considered exempt from the FLSA, and is required to be paid overtime. According to the announcement from the DOL, with this proposed increase, overtime eligibility would be expanded to more than one million workers in the US.

Image

While the increase in the salary test threshold will lead to more workers being eligible for overtime pay, it is important to remember that the salary level isn’t the only criteria on which to base an employee’s exempt status. Employees must also be proven to be paid on a salary basis, as well as pass the duties test. The duties test determines if an employee performs exempt job duties in one of three categories – executive, professional and administrative. These job duties are not based on the employee’s job description but on the duties actually performed on a regular basis.

 

The FLSA is a federal-level guideline. Each state is able to establish their own standards for qualifying as exempt from overtime. Cases in which the state and federal guidelines differ, whether that difference is the salary level or stricter duties included in the duties test, the stricter standard will apply.

The process to finalize these proposed changes will be a timely one, but it is expected that the Department of Labor will try to finalize the rules by the end of 2019 or early 2020.

 

Contact your local Payroll Vault office for more information on the proposed FLSA changes and how they may affect your business.

Image

Published on:

March 21, 2019

Share this post:

Share Share Share

All, News, Compliance, Labor, business, employer, human capital management, hr, payrollbusiness

Related posts

Filing Small Business Taxes for the First Time: What to Know
January 26, 2023 Filing Small Business Taxes for the First Time: What to Know
Payroll Solutions: A Complete Guide to Hiring Help for Your Small Business
January 20, 2023 Payroll Solutions: A Complete Guide to Hiring Help for Your Small Business
Switching Payroll Providers: What to Know When It's Time for Them to Go
December 27, 2022 Switching Payroll Providers: What to Know When It's Time for Them to Go
Four Payroll Resources for the New Business Owner
December 13, 2022 Four Payroll Resources for the New Business Owner
Payroll Budget: What to Know When Planning for Employee Pay
November 22, 2022 Payroll Budget: What to Know When Planning for Employee Pay
Equitable Hiring Practices: Make Sure You're Employing People Fairly
November 15, 2022 Equitable Hiring Practices: Make Sure You're Employing People Fairly
Employee Absenteeism: Causes, Costs, and Workplace Solutions
November 10, 2022 Employee Absenteeism: Causes, Costs, and Workplace Solutions
Exempt vs. Non-exempt Employee: What's the Difference?
November 08, 2022 Exempt vs. Non-exempt Employee: What's the Difference?
LLC Payroll: Your Top Questions Answered
November 03, 2022 LLC Payroll: Your Top Questions Answered
2022 End of Year Payroll Checklist
November 02, 2022 2022 End of Year Payroll Checklist

Facebook Twitter LinkedIn GMB

Contact Us

  • (269) 202-8434

  • 8089 Stadium Dr, Kalamazoo,
    Michigan, 49009
  • Monday - Friday,
    8:00 am - 5:00 pm

Get Quote

Useful Links

  • About Us
  • Areas We Serve
  • Blog
  • Useful Info
Newsletter

Our Solutions

  • Payroll Solutions
  • HR Solutions
  • Time & Attendance
  • Background Checks
  • Workers' Compensation
  • Labor Law Poster Services
© 2023
Powered by Seosamba Development Marketing Campaign
Level Double-A conformance icon, W3C-WAI Web Content Accessibility Guidelines 2.1

Reset Form Get a Quote
  • Background Checks & Drug Screening (Schedule a Screening)
  • Timekeeping Center (Login to Time & Attendance Portal)
  • HR Center Login
  • Login (Employer & Employee)

PROPOSED INCREASE TO FLSA SALARY TEST THRESHOLD call now mail
Corporate Logo
  • Home
  • Our Solutions
    • Payroll Solutions
    • HR Solutions
    • Time & Attendance
    • Background Checks
    • Workers' Compensation
    • Labor Law Poster Services
  • About Us
    • Testimonials & Reviews
  • Areas We Serve
  • Blog
  • Useful Info
  • Contact Us
PROPOSED INCREASE TO FLSA SALARY TEST THRESHOLD
logo

Do you want to get notifications from this site?