The Department of Labor (DOL) has released its long awaited proposal to update regulations exempting executive, administrative, professional, and certain other employees from minimum wage and overtime requirements under the Fair Labor Standards Act (FLSA).
The FSLA requires employees be paid time and a half for hours worked over 40 in a week, unless an employee meets certain criteria for exemption. Under the current regulations, to be exempt, an employee must perform qualifying job duties and receive a salary of at least $23,660 per year. “Highly Compensated Employees” (HCEs), currently defined as those making $100,000 or more, have less stringent job duty requirements.
The DOL’s proposal includes:
- Raising the annual salary threshold for exempt workers from $23,660 to $50,440;
- Raising the annual salary threshold for HCEs from $100,000 to $122,148; and
- Implementing a mechanism to automatically raise the thresholds annually to keep pace with inflation.
The DOL is leaving the door open to further recommendations related to the salary threshold for computer professionals and the job duties tests currently in place.
In the coming week, the proposed regulation will be published in the Federal Register and be open for public comment for 60 days. After considering public comment, DOL may revise its proposal before issuing the final regulations. This process could take up to a year.
Learn more about the proposed regulation
Once the Public Comment period opens, you will be able to submit commentary at the link below. The public comment period is expected to open next week. The link will not work correctly until that time.