Yesterday the U.S. Department of Labor (DOL) announced its proposal to boost the minimum salary level for exempt employees to $679 per week or the equivalent of $35,308 per year. This is quite a jump from the current $455/week but not the jump to $912/week that was initially put into place in the fall of 2016. As the $912 was ultimately struck down by the Eastern District of Texas Court, the DOL took a different approach to determining a reasonable salary base.
In putting together the proposed rule, the DOL went across the country and spoke with six different groups to come up with this salary rate. The current level of $455 will be enforced until the rule is final. There is a 60-day review period before the rule is deemed final. Unlike the previously proposed rule, there will not be any automatic adjustments to this salary minimum. Interestingly, the Highly Compensated Employee Exemption has been raised from $100,000 to $147,414 per year.
We will keep you apprised of this exciting issue as it moves through the process. If you have questions, please contact Madalene A.B. Witterholt or another member of the Labor & Employment Practice Group.