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The US Department of Labor issued a final decision Wednesday setting the minimum wage level of exempt employees at 684 dollars per week (35 568 dollars per year), regardless of the actual tasks.
Under the Federal Labor Standards Act, "white-collar workers" such as executives, administrators, professionals, external sellers and computers are exempt from minimum wage and overtime. Normally covered employers are required to pay employees a minimum wage and a premium of overtime for employees working more than 40 hours per week.
The purpose of this new rule was to make an effective distinction between white-collar employees that Congress intended to protect from the FLSA minimum wage and overtime provisions and bona fide employees of directors, administrators, and professionals that the Congress intended to waive these statutory obligations.
According to the Department's estimates, 1.2 million currently exempt employees and 2.2 million non-exempt white-collar workers will earn or increase their eligibility for overtime.
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