Fair Labor Standards Act (FLSA)

The new Fair Labor Standards Act (FLSA) has revised the salary threshold for employees, requiring dentists (employers) to pay overtime to full-time employees making less than $47,476.

IMPORTANT UPDATE: As of November 22, 2016, a federal judge from Texas issued a preliminary injunction blocking the Department of Labor (DOL) overtime rule, scheduled to take effect December 1. The rule would have doubled the salary threshold-from $23,660 to $47,476 per year-under which most salaried workers are guaranteed overtime, affecting how you pay some of your employees. The DOL is considering its legal options to overturn the injunction, so implementation may simply be delayed. Therefore, the MDS recommends that you ensure that you have employees properly classified under the current ruling, which is not just about salary but also about the duties your employees perform.

What Changed?

  • Salary from $455 to $913
  • Amounts updated every three years beginning
    January 1, 2020

To meet an EAP exemption, the employee must:

  • Be paid a minimum salary level ($913/week on December 1)
  • Be paid on a salary basis
  • Meet the duties test as specified for each exemption

Please Note: No revisions to the duties tests were made

Employees Affected

  • Executive, administrative, and professional (EAP) exemptions (white collar)
  • Not outside sales, teachers, lawyers, doctors, interstate drivers, commissioned sales employees, etc.

Three-Year Updates

  • Salary will automatically increase every three years
  • First change effective January 1, 2020
  • Announced 150 days in advance
    • First notice should be August 1, 2019
    • On January 1, 2020, the salary will likely be $984 per week ($51,168 annually) 

Next Steps

  • Verify that employees are correctly classified
  • Identify exempt employees paid less than $913 per week ($47,476 per year), then decide:
    • Increase their salary?
    • Reclassify as nonexempt and make them eligible for overtime?