Department of Labor Issues New Proposal on Overtime Exemptions

On March 7, 2019, the U.S. Department of Labor (DOL) issued a proposed rule that would change the salary thresholds for certain exempt employees under the Fair Labor Standards Act overtime rules.

Under the proposal, the minimum salary level for the "white collar" overtime exemptions would increase from $455 to $679 per week ($35,308 annually). It would also increase the total annual compensation requirement needed to exempt highly compensated employees (HCEs) from $100,000 to $147,414 annually.

Action Steps

These changes will not be effective until after a final rule is issued. Employers are not required to comply with the proposal, but they should become familiar with it and begin identifying which employees may be affected if the rule becomes final. North Risk Partners will keep you informed on future developments from the DOL.

This regulatory update is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice.

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