Wyatt Employment Law Report

Comment Period Open for DOL’s Proposed Salary Increase

By Sharon Gold

The Office of the Federal Register officially published the Notice of Proposed Rulemaking (“NPRM”) raising the salary minimum for exempt workers that we discussed last week.  The NPRM proposes to raise the minimum salary for exempt workers to $35,308 per year ($679 per week), from the current minimum of $23,660 per year ($455 per week).  The NPRM also raises the highly compensated minimum to $147,414 per year, up from the current minimum of $100,000.  Once a proposed rule is officially published, the 60 day comment period is open.  Employers have until May 21, 2019 to comment.  The link to comment is available here.

If the Rule is finalized, it is estimated that 1.1 million workers will have their salaries raised to the minimum or will be eligible for overtime.

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DOL Releases Final Rule Raising Minimum Salary for Exempt Workers, Doesn’t Change Duties Tests

By Sharon L. Gold

Speculation about when the DOL would release the final rule raising the minimum salary for exempt workers has ended.  Today, the DOL released the final rule that will be effective December 1, 2016.  The final rule is available here.

The proposed rule was quite controversial, eliciting over 270,000 comments, mostly from employers stating the proposed raises were too extreme.  The Final Rule makes several changes from the proposed rule, including adjusting the proposed amount of the salary requirements, exchanging annual increases for increases every three years, leaving the duties tests unchanged, and allowing bonuses and nondiscretionary bonuses to account for some of the salary minimums.

The DOL estimates that approximately 22.5 million wage and salary workers in the U.S. will be affected by the Final Rule, with 4.2 million workers who are currently exempt becoming eligible for overtime protections if their employers do not raise the salaries.  Final Rule at pg. 9-10.  The DOL estimates that Continue reading