On Aug. 30, 2023, the U.S. Department of Labor (DOL) announced a proposed rule to amend current requirements employees in white-collar occupations must satisfy to qualify for an overtime exemption under the Fair Labor Standards Act (FLSA).
To qualify for this exemption, white-collar employees must satisfy the standard salary level test, among other criteria. This salary level is a wage threshold that white-collar employees must receive to qualify for the exemption. The DOL is proposing to increase the standard salary level from:
- $684 to $1,059 per week ($35,568 to $55,068 per year); and
- $107,432 to $143,988 per year for highly compensated employees.
Action Steps – The proposal does not impose any new requirements on employers at this time. However, employers should become familiar with the proposed rule and evaluate what changes they may need to adopt if the rule is implemented as proposed. Notwithstanding anticipated legal challenges, including a preliminary injunction, employers can start to review a list of employees who would be affected by the rule.
Frequently Asked Questions (FAQs) – Click the following link to read FAQs for the DOL Proposed Overtime Rule
Contact us with any questions related to the proposed rule or other FLSA issues.