When Form 8815 Exempt 2023-2024

Today, we're going to talk about exempt and non-exempt employees under the Fair Labor Standards Act or FLSA. The FLSA is a federal law that regulates minimum wage and overtime pay, among other things. Most employees covered by the FLSA must be paid at least the minimum wage and be paid at least time-and-a-half the regular rate of pay for any overtime hours they work. However, the FLSA does exempt certain kinds of employees from the minimum wage and overtime requirements. So, what does this mean for you and your team? Let's start out with some basic definitions. First, in general, exempt employees are exempt from minimum wage and overtime requirements. The most common exemptions are called white collar exemptions. Some of these white collar exemptions include executives, administrative employees, professional employees, outside sales, and computer professionals. However, an employee can't just have a white collar profession to count as exempt from overtime pay. An employee must meet the standards of all three tests to be exempt. These tests include job duties, salary basis, and salary level. Let's start with the job duties test. As shown before, exempt employees often fall into white collar job categories, such as executive or administrative employees. For each exemption category, there is an associated duties test set forth from the FLSA regulations. An exempt employee must meet all of the job duties listed in their respective job duties test. Next, there's the salary basis test. In general, an exempt employee should be paid a fixed salary or fee. For certain exemptions, that means their salary won't reduce due to the quality or quantity of work they . Lastly, there's the salary level test. The current salary threshold is $455 a week or $23,660 a year. So, let's review once more. In general, an employee must meet all three...