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Exempt Salary Test Up by 40% Under Just-Released FLSA Proposed Regs

Today, the U.S. Department of Labor (DOL) issued the long-awaited proposed regulations to the Fair Labor Standard Act’s white-collar exemptions. The DOL is proposing raising the minimum salary for exempt status by about 41% to $55,068 from the current $35,568. The department also is proposing:

· Automatic increases every three years to the overtime threshold; and

· Increasing the total annual compensation requirement for highly compensated employees from $107,432 per year to $143,988 per year.


“These are proposed regs” stated Attorney Padric Noonan, “which means they will be subject to a required period of public commentary. Employers should anticipate that it will be months before any final regs are put in effect, but there is a high likelihood that we will see an increase to the minimum salary test to somewhere around this level.”


He added, “the DOL estimates that about 300,000 currently exempt-salary employees will become non-exempt by the operation of the new rule.”


Editor’s Note: The FLSA Proposed Regulations will be covered in greater detail in our Legislative Update (webinar) on Thursday, September 14, 2023. To register, contact Jessenia Narvaez at jessenianarvaez@robertnoonan.com or visit www.robertnoonan.com seminars.

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