Ask the Expert, FLSA/Wages

Ask the Expert: Part-Time Employees and the New Overtime Rule

Regarding the new overtime rule and the minimum salary threshold for exempt status—how does it treat part-time employees who are currently exempt? For example, if a part-time worker in an exempt position making is $30k annually, but the full-time  equivalent is $60k, do they meet the requirement?

part-time employees

Regardless of an employee’s status as part-time or full-time, he or she must meet the minimum salary threshold for exemption from overtime pay under the FLSA.  So, a part-time employee must receive at least $455/week in salary to be exempt from the FLSA’s overtime requirements.  Effective December 1, 2016, the employee must receive $913/week.

If the employee earns an hourly wage or a salary of less than the required amount, he or she would be nonexempt.

Overtime is owed only for hours worked beyond 40 in a given week. Note that it is possible for an employee to be paid a salary but still be considered nonexempt, so you may continue to pay this employee a salary even if he or she does not meet the dollar amount for exemption (either now or as of 12/1/16).

  • Kathy M

    Thank you for this explanation. First website I found after searching forever for an answer to my questions. Big issue at current job with part-time employees.

  • Nicole Cassens

    Regarding the topic above on the new OT rule and part time employees. We have the situation listed above, however he currently works 3 10 hour days and is exempt. If we change him to non-exempt, all hours over 8 would be considered overtime. Is there any work around to this so he can continue with his schedule at the same pay? Thanks for any advice.
    Nicole

  • J Bones

    My employer keeps insisting that this isn’t correct. That, even though I’m part time, the DOL looks at my salary as if it was full time in determining exempt vs non-exempt. Very frustrating.

  • T.W.

    So if a part-time employee only works 30 hours per week X2 weeks total 60 hours (which is their standard work schedule) but then also works extra 22.5 for a total 82.5 hours, do they get paid 60 regular hours and then 22.5 overtime? My payroll check came in as being paid 80 hours regular and only 2.5 overtime, is this correct because I feel like I’ve been shorted out of overtime on a few payroll periods?

  • Mike Hewitt

    I was initially told I was on “company directed leave” with benefits until the end of March, i have been waiting for separation documents, i was told today I shouldn’t expect them as I was actually downgraded to “part-time”. I have emails and texts from the person who hired me and I have been using vacation time which is done.
    What are my options?

    • Mike Hewitt

      I was a “Level G” employee which made me not eligible for straight time over 40. Was sick 2-4 days a week from January 4 until sent home after sending an email to client accountant. Was seriously off my game but after 2 weeks home recovered.