Wyatt Employment Law Report

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Sixty-Day Comment Period Open Regarding the DOL’s Proposed Rule Increasing Salary Requirement for Exempt Employees

By Sharon L. Gold

Today begins the sixty-day period when employers can submit comments about the DOL’s proposed rule increasing the salary requirements for exempt employees. The DOL proposes that the minimum salary requirements be raised from $455 coin stackper week or $23,660 a year to $970 a week or $50,440 a year. In order to qualify for the highly compensated exemption, an employee would have to make $122,148 annually, which is up from $100,000. In addition to comments on the salary increase, the DOL asks for comments on whether nondiscretionary bonuses and incentive pay should be included in the calculation of the minimum increased salary.

The proposed rule did not make any changes to the duties test that is utilized to determine if an employee is exempt (for instance, some thought the proposed rule would require that a certain amount of time be spent in management). However, the DOL did ask for Continue reading