Since it’s 1938 enactment, the Fair Labor Standards Act, or FLSA, has created exemptions for executive, professional, and administrative employees from any minimum wage and overtime exemptions requirements.
Exempt employees under the statute receive a salary, and are paid no less that four hundred and fifty-five dollars per week, which equates about twenty-three thousand dollars a year.
Clearly, there are portions of the FLSA that don’t align with 21st century realities based on salary. There have been updates to the FLSA over time but more changes on the horizon; specifically the minimum exemption wage.
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President Obama is reviewing the Act and is considering increasing the exemption wage by over 200%. This would mean changing the current minimum salary from twenty-three thousand dollars a year to about fifty thousand dollars a year, or nine hundred dollars a week.
Learn more about the proposed changes here.
Dianne Shaddock
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