U.S. Department of Labor Raises the Minimum Salary Threshold to Qualify for the FLSA "White Collar Exemption"
On May 18th, the U.S. Department of Labor issued its final overtime exemption rule, raising the minimum salary threshold to qualify for the Fair Labor Standards Act's white collar exemption to $47,476 per year. The regulation takes effect on December 1st. Between now and then, employers have an important decision to make for their white collar employees whose earnings are near the new threshold. Be prepared to reclassify the employee as non-exempt and start paying overtime for hours worked in excess of 40 per week; or increase the employee’s salary to $47,476 or more, to keep the employee exempt. The DOL’s “white collar” exemption applies to an employer’s executive, administrative, and professional workers.