The rule will also increase the total annual compensation requirement for highly compensated employees (who are not entitled to overtime pay under the flsa if. The irs defines a highly compensated, or “key,” employee according to the following criteria:
In april 2024, the department issued a final rule increasing the standard salary level for exemption, and the total annual compensation requirement for highly compensated. An hce can be defined as an employee who owned more than 5% of the company at any time during the year (or the year before).
What Is A Highly Compensated Employee?
Discover how hces are defined, the additional limits they face, and strategies.
Employees Also May Be Highly Compensated Based.
This fact sheet provides information on the exemption from minimum wage and overtime pay provided by section 13 (a) (1) of the flsa as it applies to highly compensated employees as defined in 29 c.f.r.
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What Is A Highly Compensated Employee?
The irs defines a highly compensated, or “key,” employee according to the following criteria:
An Hce Is Any Employee Who Meets Either An Ownership Test Or A Compensation Test At Any Time During The Plan Year In Question Or In The.
A highly compensated employee (hce) is someone who meets the irs’s ownership test or compensation test.