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COMPARISON OF FLSA AND CTDOL

“WHITE-COLLAR”
EXEMPTION REGULATIONS

FLSA CTDOL
Basic Requirements for (1) Salary Basis; and
All “White-Collar” (2) Duties Test
Same as FLSA
Exemptions:
Must Meet Both Prongs

29 CFR § 541.118(a)
Definition:
employee must receive his
full predetermined salary
amount for any week in Same as FLSA; see Conn.
Salary Basis
which he performs any State Agencies Regulations
Definition
work; § 31-60-14 Definition:
such amount is not subject
to reduction because of
variations in the quality or
quantity of work performed

Paid on salary or fee basis Short Test:


[no fee basis for executive paid on salary or fee basis
exemption] of: [no fee basis for executive]
of > $475 per week
> $455 per week;
OR
Increased from:
Long Test:
Salary Threshold (1) $155 long test; (1) paid on salary or fee
Amounts basis [no fee basis for
(2) $250 short test. executive]of > $400 per
week;

Practical Effect: Practical Effect:

Consolidated into single CT retains 2 tests, but it


threshold amount – no Essentially eliminates CT
longer has a long test. Long Test.

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Practical Applications
of FLSA CTDOL
Salary Thresholds:
<$455 The CT $400 long test
No exemptions permitted becomes moot because
NO EXEMPTIONS until salary reaches $455. FLSA is more protective
(i.e., no exemptions) up to
$455.
No Man’s Land:
> $455, but <$475

FLSA Single Test FLSA “single test” applies The CT “long test” applies
v. because salary >$455. because salary > $400
CTDOL “long test”


The more protective law Generally, CT “long test”
applies? will be more protective
(Depends on duties test (more factors) and thus will
analysis.) apply.

>$475 Exceeds $455 threshold Exceeds $475 “short test”


threshold.
FLSA Single Test
v. FLSA duties test applies CTDOL “short test” duties
CTDOL “short test” apply

Which law is more Should be equally ⇨ ⇦ Should be equally


protective
after duties test analysis? protective. protective.

Practical Advice: Less


risky to pay the $475 than
the uncertainty that $455
brings.

Dependent on Exemption
Duties Tests Same as FLSA
Type
(1) Executive;
(1) Executive;
(2) Administrative;
(2) Administrative;
Types of (3) Professional;
(3) Professional; and
“White Collar” (4) Outside Sales; and
(4) Outside Sales.
Exemptions - - - - - - - - - - - - - -
(5) Computer Employees
***No exemption for
computer employees***

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Exemptions apply only
to “white collar”
employees who meet
salary and duties tests.
Exemptions do not
apply to workers who
do repetitive work with
their hands, physical
“Blue Collar” Workers:
skill and energy no
(No Exemptions Same as FLSA
matter how highly paid
Applicable)
they might be.

Examples:
Non-management
carpenters, electricians,
mechanics, plumbers, iron
workers, construction
workers and longshoremen.
FLSA Exemptions do not Police/Firefighters:
apply to police, firefighters, Statutory Exemption for
paramedics and first permanent, uniformed
responders. employees of a municipality
pursuant to Conn. Gen. Stat.
However, Section 7(k) § 31-76i(l).
provides for partial
Police, Firefighters exemption in 2 respects: Exception:
Paramedics & First (1) permits higher hourly CTDOL will enforce a
Responders standards before collective bargaining
No Exemptions requiring overtime pay; agreement that
and provides for overtime.
(2) permits overtime hours
to be computed over a First Responders:
work period selected by CTDOL does not address
the employer, which this classification of
may be longer than a employees; thus, are
workweek. considered non-exempt.
Section 7(o) permits states
and local governments to
agree with employees that
Same as FLSA for
Compensatory Time for compensatory time off may
municipal employees; see
Government Employees be provided in lieu of
Conn. Gen. Stat. § 7-460c.
monetary payment.
Compensatory Time Rate:
Compensatory time must be

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awarded at rate of at least
1.5 hours for each hour of
overtime worked.
Seven Deductions:
(1) one or more full days
for personal reasons
(other than sickness or
accident);
(2) one or more full days
for sickness or
disability after sickness
or disability leave has
been exhausted
pursuant to bona fide
Permissible
plan;
“Docking”
(3) Offset for jury duty,
Practices
witness fees, and
military duty; Same as the FLSA except
Practical Effect:
(4) one or more full days no #7.
Employer can make
for violation of safety
deductions to salary
rules of major
without losing the
significance;
exemption.
(5) First and last weeks of
employment;
(6) FMLA Leave – even <
full day; and
- - - - - - - - - - - - - -
(7) Unpaid disciplinary
suspensions of 1 or
more full days for
violating workplace
rules, e.g. sexual
harassment policy.
Administrative, professional
and computer (not
executive) employees may
be paid on a fee basis rather
than on a salary basis. Applies to administrative
Agreed fee is paid for a and professional
Fee Basis unique single job, exemptions only.
regardless of time
required for job’s Same FLSA requirements.
completion.
To determine if fee
meets minimum salary
requirements, the test is

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to consider the total
time worked on the job,
and determine whether
the fee is at a rate that
would amount to at
least $455 a week if
employee worked 40
hours.
New regulations do not
change current treatment.

Both must be met to qualify


for exemption:
Employee’s primary
duty must be making
sales or obtaining orders
or contracts; and Same as FLSA; see Conn.
Outside Sales Exemption
Employee must be Gen. Stat. § 31-76i(f).
customarily and
regularly engaged away
from employer’s
place(s) of business.

The salary requirements of


the regulation do not apply
to this exemption.

Paid total annual


compensation of >$100,000
(at least $455 weekly
salary) are exempt from
FLSA requirements if they
customarily and regularly
perform at least one of the
duties of an exempt
Highly Compensated executive, administrative or No such exemption exists
Employees professional employee. for this class of employees

***This exemption does


not apply to “blue collar”
workers.***

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FLSA § 13(a)(1); 29 CFR
Part 541
Conn. Gen. Stat. § 31-
76i(e); Conn. State
Duties Tests Focuses on
Agencies Regulations §31-
Primary Duty:
60-14
(1) must manage enterprise,
department or
Duties Tests Dependent
subdivision; and
On Salary Amount Paid:
(2) must customarily and
regularly direct work of
Short Test (> $475 Salary):
> 2 F/T employees; and
(1) same as FLSA; and
(3) must have authority to
(2) same as FLSA.
hire and fire.
[(3) no hire and fire duty]

Long Test (> $400 Salary):


(1) same as FLSA; and
(2) same as FLSA; and
Executive Exemption
(3) same as FLSA; and
Duties Test
(4) customarily and
regularly exercises
discretionary powers;
and
must not devote more than
20% (40% for retail or
service employee) of time
to duties not related to Nos.
1 to 4 above.
Business Owner
Exemption:
CTDOL Enforcement
Any employee who owns at
Practice: same as FLSA
least 20% equity interest in
“Business Owner
enterprise and is actively
Exemption”
engaged in its management
is exempt as an executive
employee.
FLSA § 13(a)(1); 29 CFR Conn. Gen. Stat. § 31-
Part 541 76i(e); Conn. State
Agencies Regulations §31-
Duties Tests Focuses on 60-15
Administrative Exemption Primary Duty:
Duties Tests must be performance of Duties Tests Dependent
office or non-manual On Salary Amount Paid:
work directly related to
the management or Short Test (> $475 Salary):
general business (1) same as FLSA; and

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operations of the (2) same as FLSA.
employer; and [(3) no hire and fire duty]
must include the
exercise of discretion Long Test (> $400 Salary):
and independent Primary duty must be:
judgment on significant (1) performance of office or
matters. non-manual work
directly related to
Examples: management policies or
Tax and financial general operations of his
consultants, accounting, employer;
budgeting, auditing, OR
insurance, advertising, loan performance of functions
officers, team leaders who in the administration of a
are not supervisors, etc. school system in work
directly related to
OR academic instruction or
training; and
must be the (2) must customarily and
performance of regularly exercise
administrative functions discretion and
directly related to independent judgment;
academic instruction or and
training in an (3) must regularly and
educational directly assist a
establishment. proprietor or an
employee employed in
Examples: an executive or
Superintendents of school administrative capacity;
systems, assistants OR
responsible for curriculum, Must perform under
principals and vice- only general supervision
principals, and department work along specialized
heads. or technical lines
requiring special
training, knowledge or
experience
OR
Must execute under
only general supervision
special assignments and
tasks; and
(4) must not devote more
than 20% (40% for
retail or service
employee) of time to

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duties not related to
Nos. 1 to 3 above.

Conn. Gen. Stat. § 31-


FLSA § 13(a)(1); 29 CFR 76i(e); Conn. State
Part 541 Agencies Regulations §31-
60-16
Two Types of Exempt
Professional Employees: Duties Tests Dependent
On Salary Amount Paid:
(1) Learned Professional:
Primary Duty must be in Short Test (> $475 Salary):
the performance of Primary Duty is either:
work requiring
advanced (1) performance of work
knowledge; requiring knowledge of
an advanced type in a
Advanced knowledge must: field of science or
Be predominantly learning customarily
intellectual in character; acquired by a prolonged
and course of specialized
Require the consistent intellectual instruction
exercise of discretion and study;
Professional Exemption and judgment; and OR
Duties Tests be in a field of science teaching, instructing or
or learning; and imparting knowledge
be customarily acquired while employed as a
by a prolonged course teacher certified in the
of specialized school system; and
intellectual instruction. (2) must require the
consistent exercise of
Examples: discretion and
Lawyer (but not paralegal), judgment;
Doctor, registered nurse OR
(but not licensed practical must require invention,
nurse), accountants, chefs, imagination or talent
actuaries, engineers, in a recognized field
architects, funeral directors, of artistic endeavor.
and embalmers.
Long Test (> $400 Salary):
(1) primary duty must
(2) Creative Professional: consist of :
Primary Duty must be the #1 of short test
performance of work (alternative test); or

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requiring invention, work that is original
imagination, originality or and creative in a
talent in a recognized field recognized field of
of artistic endeavor. artistic endeavor;
and
Examples: (2) requires the consistent
Actors, musicians, exercise of discretion
composers, painters, and judgment; and
writers, cartoonists, (3) requires work which is
essayists, novelists, etc. predominantly
intellectual and varied
in character the result of
which cannot be
standardized in relation
to a given time period;
and
(4) must not devote more
than 20% of time to
duties not related to
Nos. 1 to 3 above.
FLSA § 13(a)(1) and 13
(a)(17); 29 CFR Part 541

Compensated either by:


No such exemption for this
Computer Employee > $455 salary or fee
class of employees
Exemption basis per week; OR
> $27.63 per hour (if
paid on hourly basis)

Focus on Primary Duty


which must consist of :
(1) the application of
systems analysis
techniques and
procedures to determine
system functional
specifications; or
Computer Employee (2) the design,
Duties Tests development, etc. of
computer systems or
programs; or
(3) the design, testing
modification, etc. of
computer programs
related machine
operating systems; or

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(4) a combination of the
duties described in Nos.
(1) to (3) above.

Examples:
Computer system analysts,
programmers, software
engineers, etc.
Does not include
employees engaged in
manufacture or repair of
computer hardware and
related equipment.

C:\Steve\regs\Fed OT Exemption\Comparsion Chart.doc

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