USDOL Proposes Increased Salary Threshold for Exemption from Overtime

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The U.S. Department of Labor (USDOL) has announced a proposed rule increasing the minimum salary requirement for the “white collar” exemptions (executive, administrative and professional) from the minimum wage and overtime pay requirements of the Fair Labor Standards Act.  The proposed rule would increase the minimum salary level from $684 per week ($35,568 annually) to $1,059 per week ($55,068 annually).  The annual compensation for highly compensated employees will increase from the current $107,432 to $143,988.

Additionally, the DOL proposes automatic updates to these salary thresholds every three years.  

There are no proposed changes to the duties test or the salary basis requirements.  The proposed rule is subject to a 60 day comment period.