On March 7, 2019, the U.S. Department of Labor (DOL) issued a proposed rule that would establish new salary thresholds for the “white collar” exemptions to the overtime payment requirements under the Fair Labor Standards Act (FLSA). This action follows the DOL’s 2016 final rule which never went into effect due to a federal court injunction.
- The minimum salary level for the “white collar” overtime exemptions would increase from $455 to $679 per week ($35,308 per year).
- Employers could use non-discretionary bonuses and incentive payments (including commissions) that are paid annually or more frequently to satisfy up to 10 percent of the standard salary level.
- The salary level for the “highly compensated employee” exemption would increase from $100,000 to $147,414 per year.These changes are not effective until a final rule is issued. In the meantime, employers should review the information, determine which employees would be affected if the rule is finalized, and keep abreast of updates. We will host a webinar on the proposed rule presented by Maynard Cooper attorneys on April 10. Look out for our upcoming webinar invite.
Our bulletin below contains a general overview of the proposed rule, background and action steps.
If you have questions or need help, please contact one of our benefits consultants.