These requirements show why salary is important. Need a quick brush-up on this labor law specific? Look to this definition offered by attorneys Dale Hudson and Jeffrey League with law firm Nixon Peabody: "The Fair Labor Standards Act (FLSA) requires that employees be paid equal to or more than the federally mandated minimum wage, and further requires that employees be paid an overtime premium for all time worked in excess of 40 hours in a workweek. However, FLSA exempts from the minimum wage and overtime rules any employees who are employed in a 'bona fide executive, administrative or professional' capacity, commonly referred to as the 'white collar exemptions.' To qualify for the white collar exemptions under Department of Labor (DOL) Regulations, an employee must: (1) perform bona fide executive, administrative or professional duties, as defined in the Regulations;
(2) be paid on a salary basis; and
(3) be paid a salary not less than the prescribed minimum (currently $23,660 per year)."