Under the federal
Fair Labor Standards Act, an employee must earn a specified minimum salary and perform
certain types of duties to qualify for one of the white-collar exemptions from
overtime. The required minimum salary is $455 per week or $23,660 per year. In
a recent opinion letter, the U.S. Department of Labor (DOL) told an employer
that it couldn’t prorate the minimum salary to $288 per week/$15,000 per year
for part-timers performing exempt work. “It is our opinion that the salary
requirement of $455 per week may not be prorated to reflect reduced hours, and
the employee paid a salary of $288 per week does not qualify for the exemption,”
the opinion letter stated. The DOL pointed
out that the employer
had the options of paying part-timers $23,660 and maintaining the exemption, or
moving the employee to hourly status and paying overtime as required.
Similarly, the
that the minimum salary for exemption may not be prorated for part-time status.
requires a monthly salary at least two times the current minimum wage of $8.00
per hour. This works out to a minimum salary of $2,773.33 per month or $33,280
a year.