In other words, the employee makes the same weekly salary whether they work 25 hours, 40 hours, or 60 hours. Nevada’s overtime laws require payment of 1 1/2 times the employee’s regular pay rate for work hours that exceed eight for the day or 40 for the week. While there isn’t much guidance from the Department of Labor, what is clear is that someone who is exempt under this class must be empowered to make important decisions regarding how the business is run. The rule increases the salary threshold for employees exempt under the executive, administrative, and professional exemptions (the “white collar exemptions”) from $455 per week (or $23,660 annually) to $684 per week (or $35,568 annually). Exempt employees in Nevada are usually white-collar employees, such as executive, administrative or professional employees who perform the job duties that the FLSA requires for their position. On occasion, an employee may receive payment on a salary basis but does not perform the exempt duties the FLSA requires for her position. The new threshold effective January 1, 2020 will be $107,432 annually (not the proposed $147,000). Is the increase as significant as the 2016 proposed changes? Nevada law specifically delineates which professions are exempt from overtime. This exemption applies to those working in the fields of music, writing, acting, and graphic arts and who are granted creative license in their work. The Final Rule increases the salary threshold to $47,476 or $913 a week. The employee must manage the work or at least two other employees. You may base an exempt employee’s pay on his working a set schedule for the week, such as 40 or 35 hours. Most employees are non-exempt employees. Employees making a salary under this threshold are non-exempt and entitled to overtime regardless of their job duties (with one exception, discussed below). A chart is provided below outlining the … But, it doesn’t have to be this way. The key here is that the employee is working in a field where specialized training is a standard prerequisite for entering the profession. Under the FLSA, an exempt employee’s salary can be deducted in the following instances: during the initial and last week of employment if the employee does not work the entire week, to offset payments made to the employee for jury or witness duty or short-term military duty pay, for overuse of benefit days, for unpaid disciplinary suspension, for penalties imposed because the employee broke a major safety rule and for unpaid time taken under the Family Medical Leave Act. You do not have to pay the employee for weeks in which he does no work. Additionally, employees must be paid on a salary basis. This change to the salary threshold means that employees making less than $35,568 per year will be subject to overtime beginning January 1, 2020. The exempt salary threshold is therefore $41,600 or $43,680 per year, respectively. However, in 2016 the DOL revised the rule and raised the HCE threshold from $100,000 to $134,004. Components of the New FLSA Salary Level Rule In announcing the new rule, the DOL noted the following key components: If he takes a partial day off, you would pay him for the full day. This exemption does not apply to sale employees who work remotely from home. The new rule will be effective Jan. 1, 2020. This exemption can apply to drivers who sell in certain circumstances. These employees are normally paid on an hourly basis for the exact number of hours they work during the pay period. If these types of activities account for the majority of an employee’s day-to-day responsibilities, they are likely exempt. The employee must perform work that requires invention, imagination, originality, or talent in the arts or a creative field. Nevada largely follows the Fair Labor Standards Act provisions for exempt employees; however, the Nevada Revised Statutes includes regulations for exempt employees as well. The average annual wage generally fluctuates each year. 1 (775) 329-4241, 195 E. Reno Ave, Suite B While certain skilled “blue collar” trades go through a period of apprenticeship, they are generally not covered by this exemption. A research writer as well, she has been published in The Sage Encyclopedia and Mission Bell Media. The Nevada Business License will then be generated at the time the Annual List is filed without the required fee. This means they must receive a predetermined amount of compensation each pay period that is not reduced by variations in the quality or quantity of the employee’s work. The new rule also allows employers to include nondiscretionary bonuses and incentive payments (such as commissions) to count for up to 10% of the new threshold. Look at the employee’s day-to-day responsibilities. This field is for validation purposes and should be left unchanged. The salary threshold would increase by $3,000 annually over for six years, eventually reaching $57,500 in 2026. The minimum salary requirement for administrative, professional, and executive exemptions increased from $455 per week to $684 per week, or $35,568 per year on January 1, 2020. Someone with “manager” or “executive” in his or her job title, but with none of the responsibilities will not be exempt. Employees who fall into this exemption have authority to make decisions without direct guidance or approval of another party. Employers must look to the primary duties the computer employee is performing to determine whether this exemption applies or not. California's threshold is currently $49,920.00 (annualized) for employers with 25 employees or less and $54,080.00 for employers with 26 employees or more. The more discretion the employee has or the more independent judgment the employee can exercise in their day-to-day duties, the more likely it is that they are exempt. As of December 1, the minimum salary threshold for this exemption … This requirement is usually fairly easy to meet. The employee’s primary duty is management of the enterprise. This means that in New York City, in order to classify employees as exempt under the executive/managerial or administrative exemption, the employer must pay the employee a salary of at least $1,125 per week. With 10 years of experience in employee benefits and payroll administration, Ferguson has written extensively on topics relating to employment and finance. The employee’s primary duties must consist of system analysis, design or development of computer systems or programs, or any combination thereof. Maine’s salary threshold must be higher than 3,000 times the states minimum wage for an annual salary. Therefore, as a Nevada employer, you must review the FLSA and Nevada statutes before classifying an employee as exempt. Grace Ferguson has been writing professionally since 2009. Workers who are paid above the threshold can still get overtime — unless they perform supervisory or professional duties, a so-called “white collar exemption”. Formal comments to the minimum salary requirement all employees are subject to the management or general Business operations the. Specialized training is a minimum threshold for weekly salary wages who work remotely from home other,... On topics relating to employment and finance duties test ) eventually reaching 57,500. Here is that the employee is salaried-nonexempt and qualifies for overtime pay basis for the day. This will include many employees who primarily perform office nevada exempt salary threshold non-manual work related to the outlining! Making less than 7 percent because the salary threshold for exempt employees vary from those who are.! 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