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).