It’s long been a policy that employees are exempt from the Fair Labor Standards Act’s minimum wage and overtime protections if employed in a bona fide executive, administrative, or professional capacity. According to the DOL, to fall within this EAP exemption, an employee generally must meet three tests:
- Be paid a salary, meaning that they are paid a predetermined and fixed amount that is not subject to reduction because of variations in the quality or quantity of work performed;
- Be paid at least a specified weekly salary and;
- Primarily perform EAP duties, as provided in the DOL’s regulations.
The DOL’s regulations also provide an alternative test for certain highly-compensated employees who are paid a salary, earn above a higher total annual compensation level, and satisfy a minimal duties test.
The following chart covers the DOL’s current and future updates of these levels. It’s a helpful reference, but work closely with payroll and accounting professionals like us to ensure you comply.
