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Department of Labor Raises White Collar Salary Threshold

May 19, 2016
by BurnsBarton PLC
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On May 18, 2016, President Obama and Department of Labor released the final rule updating overtime regulations.

The final rule, which is effective on December 1, 2016, includes the following key provisions:

  • The salary threshold for “white collar” workers will more than double from $455 to $913 per week (which is $47,476 annually). This means that workers whose exemption depends upon their being paid a salary (such as administrative, executive and professionally-exempt employees) must be paid at least $913/week to maintain their exempt status.
  • The salary threshold for exempt “highly compensated” employees will be raised to $134,004 annually.
  • These salary thresholds will automatically increase beginning on January 1, 2020 to ensure they remain equal to the 40th percentile of earnings of full-time salaried workers in the lowest-wage census region.

 

To learn how these changes might affect the exemption status of your employees, give the attorneys at BurnsBarton a call.

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