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Tuesday, June 30, 2015

Obama Administration Announces 2016 Salaried Overtime Expansion Proposed Regulation




The U.S. Department of Labor announced today a proposed rule that would raise the minimum salary threshold required to qualify for the Fair Labor Standards Act's “white collar” exemption to $50,440 per year, $970 a week.

In order to be exempt from minimum wage and overtime requirements under the FLSA exemption for executive, administrative, professional, outside sales and computer employees, under current FLSA regulations, employees have to meet certain job duties-related tests and be paid at least $455 per week—or $23,660 annually.

The proposed regulation calls for rising to equal the 40th percentile of weekly earnings for full-time, salaried workers.  That would bring it to a projected level of $970 per week, or $50,440 annually, by the first quarter of 2016. The proposed regulation also includes automatically updating that salary threshold in order to stop it from becoming outdated.

While the DOL said it was considering whether to make changes to the duty tests, the proposed regulations do not, however, include changes.