Cotney Newsletter
Department of Labor Salary Exemption Increases
The Fair Labor Standards Act implements the exemptions for minimum wage and overtime pay requirements for executive, administrative, professional, outside sales, and computer employees.
Significant proposed revisions include increasing the standard salary level to $1,059 per week ($55,068 annually for a full year worker) and increasing the highly compensated employee total annual compensation threshold to the annualized weekly earnings of $143,988.
The Department is also proposing to add to the regulations an automatic updating mechanism that would allow for the timely and efficient updating of all the earnings thresholds.
These increases along with automatic adjustments means that contractors need to monitor the pay of salaried employees annually to ensure they still are exempt and not subject to hourly requirements.
The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.