U.S. DOL PROPOSES RULE TO INCREASE EXEMPT EMPLOYEES’ MINIMUM SALARY LEVEL
In case you missed it, on August 30, 2023, the US Department of Labor (DOL) issued its long-awaited proposed Rule to increase the salary threshold required for employees to be exempt from overtime under the Fair Labor Standards Act (FLSA). To satisfy the requirements for the executive, administrative or professional (EAP) exemption, employees must meet certain tests regarding job duties and generally must be paid on a salary basis in an amount that is at least the amount specified in the DOL regulations. Under the DOL’s proposed Rule, the salary level required for the EAP exemptions would increase from the current salary of $35,568 annually ($684/week) to $55,068 annually ($1,059/week). Such a Rule would dramatically increase the number of employees who would have to be paid OT.
The proposed Rule may be changed based on comments from the public, but we would rather doubt it. There will almost certainly be legal challenges to the Rule. Prior legal challenges to overtime Rules issued by the DOL have met with some success in the courts, but the outcome would be far from certain.
We will keep you updated.