DOL to Double Salary Test

By Bryan Stillwagon

The DOL released its long-awaited Notice of Proposed Rulemaking to update the salary requirements for the FLSA’s white collar exemptions (e.g., executive, administrative, and professional employees). Some highlights of the Proposed Rule:

  • Raise the standard salary level test from $455/week ($23,660 annually) to $970/week ($50,440 annually) (2016 figures)
  • Raise the salary requirement for Highly Compensated Employees from $100,000 to $122,148 annually
  • Automatic update the salary level requirements going forward
  • Revise the duties tests “to ensure that these tests fully reflect the purpose of the exemption”

Many employees currently classified as exempt from overtime are likely to lose the exemption because of the increased salary level test.