Under the FLSA regulations, highly compensated employees who earn a total compensation of $100,000 or more annually (can include bonuses and stipends) can be exempt from overtime eligibility if they meet the following three criteria:
- The $100,000 total compensation includes at least $455 per week paid on a salary basis;
- The primary duty of the employee is office or non-manual work;
- The employee performs at least one of the exempt duties of an executive, administrative or professional exempt employee.
In this tight job market, where employers are paying never before heard of salaries to recruit and retain employees, it is important to remember that in exchange for this high salary, the employee might, in fact, be exempt from overtime requirements under the FLSA. Employers should note, though, that the threshold compensation limits may increase when (or if) the DOL regulations on white-collar exemptions change.