What is the salary test in American Samoa?

What is the salary test in American Samoa?

• A. $400/week
• B. $300/week
• C. $380/week
• D. $450/week

Answer: (C)

The salary test in American Samoa refers to the minimum threshold that employees must earn to qualify for certain exemptions from minimum wage and overtime requirements under the Fair Labor Standards Act (FLSA) as applied locally. The correct answer, which is $380 per week, shows the established benchmark for determining eligibility for those exemptions. This amount is periodically reviewed and adjusted to reflect changes in the cost of living and economic conditions within American Samoa. By setting this figure, the intent is to ensure that employees who earn above this threshold are classified as exempt from certain labor protections, which can help employers manage labor costs, particularly in industries with many managerial or administrative roles. Understanding this salary test is crucial for compliance with labor laws in American Samoa, as it impacts both the rights of employees and the obligations of employers.

The salary test in American Samoa refers to the minimum threshold that employees must earn to qualify for certain exemptions from minimum wage and overtime requirements under the Fair Labor Standards Act (FLSA) as applied locally. The correct answer, which is $380 per week, shows the established benchmark for determining eligibility for those exemptions.

This amount is periodically reviewed and adjusted to reflect changes in the cost of living and economic conditions within American Samoa. By setting this figure, the intent is to ensure that employees who earn above this threshold are classified as exempt from certain labor protections, which can help employers manage labor costs, particularly in industries with many managerial or administrative roles.

Understanding this salary test is crucial for compliance with labor laws in American Samoa, as it impacts both the rights of employees and the obligations of employers.