DOL Finally Issues Final Rule on White Collar Exemptions

After many, many months of discussion, the DOL has finally issued its final rule regarding white collar exemptions and, more specifically, the minimum salary required in order to qualify. The final rule can be found at the DOL’s web site: https://www.dol.gov/WHD/overtime/final2016/

BIG PICTURE 

  1. The final rule raises the minimum salary to $47,476 annually and $913 per week.  If an employee makes less than this, they must be paid overtime.
  2. The minimum annual compensation for the “highly compensated” exemption will be raised to $134,004.
  3. Both 1 and 2 above will be raised every three years and will be tied to the wage census.
  4. The final rule DOES NOT change the duties tests for white collar exemptions.
  5. The rule will become effective on December 1, 2016.  This is a Thursday so the entire pay period will have to be compliant with the new law.
  6. For the first time, employers may use non-discretionary bonuses and incentive payments to satisfy up to 10% of the required salary.

I highly recommend that you read the entire rule. As always, don’t hesitate to call me directly if you have any questions.

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