On September 24, the U.S. Department of Labor issued a Final Rule changing the minimum salary requirements for the Fair Labor Standards Act’s “white-collar” overtime exemptions. The new minimum salary is not as bad as many had feared.
Effective January 1, 2010, the key provisions of the Final Rule are:
- Minimum salary is raised from $455 per week ($23,660 annually) to $684 per week ($35,568 annually);
- Total annual compensation for Highly Compensated employees is raised from $100,000 to $107,432; and
- Employers may use non-discretionary bonuses and incentive payments (including commissions) that are paid annually or more frequently to satisfy up to 10% of the new salary requirement. (Do not be tempted to use discretionary bonuses for this purpose.)
Continue reading “Are You Ready for the New White Collar Salary Requirements?”