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B-331452 1 (2019-10-10)

handle is hein.gao/gaobaeacz0001 and id is 1 raw text is: G A O U.S. GOVERNMENT ACCOUNTABILITY OFFICE 441 G St. N.W. Washington, DC 20548 B-331452 October 10, 2019 The Honorable Lamar Alexander Chairman The Honorable Patty Murray Ranking Member Committee on Health, Education, Labor, and Pensions United States Senate The Honorable Bobby Scott Chairman The Honorable Virginia Foxx Ranking Member Committee on Education and Labor House of Representatives Subject: Department of Labor, Wage and Hour Division: Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees Pursuant to section 801 (a)(2)(A) of title 5, United States Code, this is our report on a major rule promulgated by the Department of Labor, Wage and Hour Division (the Department) entitled Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees (RIN: 1235-AA20). We received the rule on September 27, 2019. It was published in the Federal Register as a final rule on September 27, 2019. 84 Fed. Reg. 51230. The effective date of the rule is January 1, 2020. The final rule is an update and revision of the regulations issued under the Fair Labor Standards Act (FLSA) that implements the exemptions from minimum wage and overtime pay requirements for executive, administrative, professional, outside sales, and computer employees. 29 U.S.C. 213(a)(1). FLSA generally requires covered employers to pay employees a minimum wage and, for employees who work more than 40 hours in a week, overtime premium pay of at least 1.5 times the regular rate of pay. Employees in a bona fide executive, administrative, or professional capacity, however, are exempt from the minimum wage and overtime pay requirements. This final rule uses the salary level test to define the exemption on the basis that employees paid less than the salary level are unlikely to be bona fide executive, administrative, or professional employees. The rule rescinds the 2016 standard salary level and sets a new level at $684 per week with special rates for United States territories. This rule contains provisions on nondiscretionary bonuses and incentive payments. The rule also contains provisions that set the highly compensated employee annual compensation amount.

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