What does this mean for your business? Let’s break it down.
Under the Fair Labor Standards Act, employees who work more than 40 hours a week are entitled to overtime. However, some employees are exempt from this rule under certain conditions.
The first requirement an employee must meet to be exempt from overtime is that they be paid on a salary basis–that is, they get the same paycheck every week (or pay period) regardless of whether they have worked 10 hours or 100 hours. The second requirement is that the check be a minimum salary–right now, it’s $684 per week. Under the new proposed rule, that would jump to $1,059 per week.
