Department of Labor Publishes Proposed Rule to Increase Minimum Salary for “White Collar” Overtime Exemptions

March 15, 2019

The Labor Department announced its long-awaited proposed revision to the salary level threshold above which employees may be exempt from the requirement to pay overtime.

The proposed rule would:

  • Increase the salary level threshold for FLSA exempt employees from $23,600 ($455 per week) to $35,308 ($679 per week);

  • Allow nondiscretionary bonuses and incentive payments to count towards 10 percent of the threshold; and

  • Increase the salary level threshold for highly compensated employees from $100,000 to $147,414 for the simplified duties test.

The proposal did not call for any indexing of the threshold or any changes to the out-of-date duties tests that exempt employees must meet.

Looking ahead: A final rule is expected by late 2019 or early 2020.