U.S. Department of Labor Proposes Raising the Minimum Salary Threshold

The U.S. Department of Labor issued a preview of what it is offering as the new rule raising the minimum salary threshold required for workers to qualify for the FLSA "white collar" exemption to $35,308.00 per year. This new rule will replace the former administration's rule, which set the threshold at approximately $47,000.00. Also, the FLSA overtime exemptions for Executive, Administrative, and Professional workers ("EAP") will be updated.

The prior administration's version of the rule was made invalid in the middle of 2017 by a U.S. District Court in Texas via injunction.

The Department of Labor said that it utilized the same methodology in setting the $35,308.00 or $679.00 per week threshold as was used to set the prior threshold in 2004.

Another element of the existing rule, known as the "Duties Test," which identifies FLA Exempt EAP employees, does not appear to be changed otherwise. It is estimated that this rule take effect in January 2020.

As always, should you have any questions concerning compliance, please reach out to any member of the Barrett McNagny Labor and Employment group.

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