On July 6, 2015, the U.S. Dept. of Labor (DOL) issued a notice of proposed rulemaking that would change the regulations that exempt administrative, executive, and professionals from the Fair Labor Standards Act’s minimum wage and overtime requirements.
Oftentimes, these exemptions are referred to as “white collar” exemptions.
The proposed rules would change the current salary threshold for the exemption of employees from overtime pay from $455 per week ($23,660 per year) to $921 per week ($47,892 per year). That equates to an over 100 percent increase.
Employers impacted by the rule change will have to increase employee compensation to meet the threshold, or begin paying overtime.
The DOL is accepting written comments on the proposed rule through September 4, 2015.