Important changes to exempt / non-exempt employee classifications and overtime thresholds – well explained in this blog from Smith Amundsen.
Today the US Department of Labor (“DOL”) issued its long awaited final rule increasing the minimum salary requirements under the Fair Labor Standards Act (“FLSA”).
Key Provisions of the Final Rule
The Final Rule focuses primarily on updating the salary and compensation levels needed for Executive, Administrative and Professional workers to be exempt.
Of particular significance, the Final Rule:
- Sets the standard salary level at $913 per week – $47,476 annually;
- Sets the total annual compensation requirement for highly compensated employees (HCE) subject to a minimal duties test to $134,00; and
- Establishes a mechanism for automatically updating the salary and compensation levels every three years to maintain the levels using the above percentiles.
Additionally, the Final Rule amends the salary basis test to allow employers to use nondiscretionary bonuses and incentive payments (including commissions) to satisfy up to 10…
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