The Employer’s Wage and Hour Advisor

Specifically, the U.S. Department of Labor will propose today that the salary threshold needed to maintain such exempt classifications should increase from $23,660 to $50,440 per year (or $970 per workweek). This amounts to more than a doubling of the current salary requirement. Under the proposed increase, currently exempt executive, administrative, and professional employees either would need to receive a guaranteed salary of at least $50,440 per year, to maintain their exempt classifications, or be reclassified as nonexempt employees and paid overtime pay for all work in excess of 40 hours in a workweek.

The Department of Labor must permit a notice-and-comment period before implementing this proposed change. Consequently, there is no effective date for the proposal at this time (which could be revised following the notice-and-comment period). Nonetheless, the proposed salary increase will affect most U.S. employers and businesses are well advised to begin planning now.

Additional changes to the white-collar exemptions are expected to be published later this week. Please continue to follow Honigman’s Employer's Wage and Hour Advisor blog for further details and information.