Paying 100% of An Employee’s Benefits Does Not Count Towards the FLSA Exempt Salary Threshold in Business and at Work


As we get closer to the December 1, 2016 deadline raising the minimum exempt salary threshold to $913 a week or $47,776 a year, the questions continue to ramp up.  The answer to this week’s question, from the U.S. DOL Frequently-Asked Questions (FAQs) website:

Q. If the employer pays 100% of all premiums for benefits (e.g. health insurance, dental insurance) for all employees, could that be counted towards the salary threshold?

A. Thank you for your question. The salary level does not include payments for medical, disability, or life insurance, or contributions to retirement plans or other fringe benefits.

What other questions do you have as you prepare to comply with the December 1, 2016 changes in the Federal Fair Labor Standards Act, in business and at work?

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