On September 24, 2019, the Department of Labor (finally) issued the final rule on the minimum salary threshold required for employees to qualify for the Fair Labor Standards Act’s “white-collar” exemptions.
- Raises the new minimum salary threshold to $35,568 per year ($684 per week). The previous salary threshold, which had been in place since 2004, was $23,660 ($455 per week).
- Raises the “highly compensated” employee salary threshold from $100,000 to $107,432 per year.
- Allows employers to count certain non-discretionary bonuses, incentives, and commissions to satisfy up to 10% of an employee’s salary level.
- Does not impact the job duties test.
- Is estimated to make an additional 1.3 million more workers eligible for overtime.
- Will take effect quickly — on January 1, 2020.