Takeaways
- New DOL opinion letters clarify FLSA exemptions and calculations, including that the federal minimum wage ($7.25 per hour) is the proper measure for determining whether the 7(i) exemption’s minimum pay standards are met, even in states with higher minimum wage rates.
- Incentive bonuses awarded automatically when employees satisfy predetermined criteria are not discretionary and must be factored into the regular rate when calculating employees’ regular rate for overtime purposes.
- Supervisory responsibilities are not a component of the “duties” test for the learned professional exemption.
- Union-negotiated “roll call” time counts toward “working hours” for overtime purposes, but an employer may consider negotiating a CBA that complies with partial overtime exemptions.
Related links
Article
The Department of Labor Wage and Hour Division issued four opinion letters interpreting the Fair Labor Standards Act (FLSA) on Jan. 5, 2026. The letters, signed by Wage and Hour Division Administrator Andrew Rogers, address:
- The learned professional exemption;
- Whether incentive bonuses are nondiscretionary and thus must be factored into overtime calculations;
- The applicable minimum wage rate that applies when determining the minimum pay standards for the section 7(i) exemption; and
- Whether a union-negotiated “roll call” period must be counted when calculating overtime due.
Learned Professional Exemption
A Licensed Clinical Social Worker (LCSW) who was relieved of...
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