have read about the new Obama Overtime changes.
If I pay my employee $50,440 or more, does that automatically qualify
her as exempt from the FLSA’s overtime rules?
No, not automatically. If you pay her less than $50,440, she will automatically
qualify for overtime. But if you pay her more than $50,400, she still must satisfy
the duties requirement of the exemption. So, for example, if you
pay your receptionist $51,000, her income level qualifies her for the
administrative exemption, but if she is responsible only for answering phones,
opening mail and greeting customers, her duties do not qualify her for the
exemption. So even with a salary that is higher than the threshold, in
this example she would still qualify for overtime pay if she works more than 40
hours in a week. Click here for more information on the duties
tests for the various exemptions.