August 31, 2023
To be exempt from overtime under the Fair Labor Standards Act’s (FLSA’s) “white collar” executive, administrative, and professional exemptions, employees currently must be paid a salary of at least $35,568 and meet certain duties tests. The Department of Labor (DOL) recently proposed an increase to the FLSA’s annual salary-level threshold to $55,068. The DOL is also proposing automatic increases every three years to the overtime threshold.
Although the new rule is subject to a period of public commentary and likely won’t take effect for several months, employers should definitely take a keen interest in this issue and may want to send their comments to the DOL.
If you have any questions or concerns regarding this or any other employment matter, please contact Dean E. Leazenby at Warrick & Boyn, LLP.