Congratulations! You and your business survived a global
pandemic and one of the most challenging economic downturns in
recent memory. The last year took a devastating toll on employees
and business alike, and you may be looking to reconsider employee
compensation and avoid litigation. As you look forward to bouncing
back in 2021, here are three reminders for properly classifying
employees.
1. Minimum Salary for Overtime Exempt
Employees
As of January 1, 2020, the new minimum pay threshold under the
Fair Labor Standards Act for exempt employees (i.e., those not
entitled to overtime) increased to $35,568 per year or $684 per
week. The rule also allows you to use nondiscretionary bonuses,
incentive payments, and commissions (all paid annually) to satisfy
up to 10% of the standard salary level. Importantly, some states
may depart from what is required under federal law, so it is
important to understand the minimum salary requirements for any
states in which you
