Earlier this year, the Fair Labor Standards Act celebrated its 85th anniversary. Later this year, the executive and administrative exemptions will also turn 85 years old. The FLSA helps ensure workers receive fair compensation, while the exemptions provide important aid to employers. Whether you are an employer or an employee, it’s important to understand what the FLSA and its exemptions do (and don’t) require. If you have questions, get in touch with a skilled Atlanta wage-and-hour lawyer to get the knowledgeable answers you need.
When the federal government created the first salary threshold for the executive and administrative exemptions in 1938, that number was $1,560 annually. By 1949, the figure was $5,200.
Currently, the minimum salary an employer can pay and also claim the executive or administrative exemption is $684 per week, or just over $35,500. If a proposed rule from the U.S. Department of Labor takes effect as written, that figure will — for the first time — climb above $50,000 annually, at $1,059 per week, or just slightly above $55,000 annually.