May Congruity Q&A: White Collar Exemption
What determines if an employee falls within one of the white collar exemptions?
Answer:
Under the Fair Labor Standards Act (FLSA), to qualify for exemption, a white collar employee generally must:
- Be salaried, meaning that he or she is paid a predetermined and fixed salary that is not subject to reduction because of variations in the quality or quantity of work performed (the “salary basis test”);
- Be paid at least a specified weekly salary level, which is currently $455 per week and proposed at $679 per week effective January 1, 2020 (the equivalent of $35,308 annually for a full-year worker) (the “salary level test”); and
- Primarily perform executive, administrative, or professional duties, as defined in the DOL’s regulations (the “duties test”).
