Potentially affected EAP workers: EAP exempt workers who are not in named occupations and are included in the analysis (i.e., white collar, salaried, not eligible for another (non-EAP) overtime pay exemption). This is estimated to be 21.4 million workers. Price elasticity of demand (with respect to wage): The percentage change in labor hours demanded in response to a one percent change in wages. Real dollars (2013$): Dollars adjusted using the CPI-U to reflect the purchasing power they would have in 2013. Salary basis test: The EAP exemptions' requirement that workers be paid on a salary basis, that is, a pre-determined amount that cannot be reduced because of variations in the quality or quantity of the employee's work. Salary level test: The salary a worker must earn in order to be subject to the EAP exemptions. The Department distinguishes among four such tests: Standard salary level: The weekly salary level associated with the standard duties test that determines (in part) eligibility for the EAP exemptions. The standard salary level was set at $455 per week in the 2004 Final Rule. HCE compensation level: Workers who meet the standard salary level requirement but not the standard duties test nevertheless are exempt if they pass a minimal duties test and earn at least the HCE total annual compensation required amount. The HCE required compensation level was set at $100,000 per year in the 2004 Final Rule, of which at least $455 per week must be paid on a salary or fee basis. Short test salary level: The weekly salary level associated with the short duties test (eliminated in 2004). Long test salary level: The weekly salary level associated with the long duties test (eliminated in 2004).
Potentially affected EAP workers: EAP exempt workers who are not in named occupations and are included in the analysis (i.e., white collar, salaried, not eligible for another (non-EAP) overtime pay exemption). This is estimated to be 21.4 million workers. Price elasticity of demand (with respect to wage): The percentage change in labor hours demanded in response to a one percent change in wages. Real dollars (2013$): Dollars adjusted using the CPI-U to reflect the purchasing power they would have in 2013. Salary basis test: The EAP exemptions' requirement that workers be paid on a salary basis, that is, a pre-determined amount that cannot be reduced because of variations in the quality or quantity of the employee's work. Salary level test: The salary a worker must earn in order to be subject to the EAP exemptions. The Department distinguishes among four such tests: Standard salary level: The weekly salary level associated with the standard duties test that determines (in part) eligibility for the EAP exemptions. The standard salary level was set at $455 per week in the 2004 Final Rule. HCE compensation level: Workers who meet the standard salary level requirement but not the standard duties test nevertheless are exempt if they pass a minimal duties test and earn at least the HCE total annual compensation required amount. The HCE required compensation level was set at $100,000 per year in the 2004 Final Rule, of which at least $455 per week must be paid on a salary or fee basis. Short test salary level: The weekly salary level associated with the short duties test (eliminated in 2004). Long test salary level: The weekly salary level associated with the long duties test (eliminated in 2004).
FLSA_Proposed_Rule_Changes_.docx