On January 1, 2020, the minimum salary that an employee must receive in order to be classified as an exempt executive, administrative, or professional employee under the federal Fair Labor Standards Act (FLSA) increased from $455 to $684 per week.1 Salaried workers making under that threshold are entitled to overtime, regardless of their job duties.
Importantly, and especially relevant to employers that operate on a multi-state basis, the FLSA does not preempt state and local laws that are considered more protective of employees. Thus, employers need to be aware of the overtime requirements of the states in which they operate.
NT Lakis currently is aware of four states – Alaska, California, Maine, and New York – that set higher salary levels than under the new federal rule, in effect entitling more salaried workers in those states to overtime pay. In addition, the threshold will go over the federal level in the state of Washington beginning on January 1, 2021. Finally, there are a few more states moving toward adopting a new higher salary level within the near future.
Members of the Center for Workplace Compliance (CWC) can read more here.