The Department of Labor has proposed raising the minimum salary threshold for “white-collar” exemptions under the FLSA to $55,068 annually.
The proposed rule would also raise the threshold for “highly compensated employees” to $143,988 per year and increase both minimum salary levels every three years.
Employers can take steps now to assess impacts and strategies for addressing this major change.
On August 30, 2023, the U.S. Department of Labor (DOL) issued a Notice of Proposed Rulemaking (NPRM), proposing to update and revise regulations under section 13(a)(1) of the federal Fair Labor Standards Act (FLSA), which governs minimum salary thresholds for employees to be exempt from the FLSA’s minimum and overtime wage requirements. The DOL’s proposed revisions would:
Background
The FLSA generally requires employers to pay all employees a minimum wage (currently $7.25 an hour) for all hours worked, along with overtime of at least 1.5 times the employee’s regular rate of pay for any hours worked in excess of 40 hours per week. Section 13(a)(1) of the FLSA, however, includes significant exemptions under which employees are not entitled to—or are “exempt” from—these minimum wage and overtime...
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