DOL Proposes New Minimum Salary Threshold for Overtime Exemptions

After holding numerous listening sessions for public feedback, the U.S. Department of Labor (“DOL”) has issued a revised increase to the minimum salary threshold for white-collar exemptions. The DOL’s proposal included raising the minimum salary requirement for being considered an exempt employee from an annual salary of $23,660 to $35,308. This could cause over a million workers to become eligible to receive overtime pay when working over 40 hours in a work week.

This proposal comes in response to the backlash and nationwide injunction that halted the DOL’s 2016 proposal that almost doubled the minimum annual salary requirement to $47,476 as the cut off to be an exempt employee. This years’ revised proposal also included periodic automatic increases that would only be implemented after notice and public comment periods which was absent from their prior proposal. Employers are being recommended to consult with experienced counsel to evaluate any potential pay modifications or reclassifications that may be necessary.

As an employee, it is important to know how your wages may be affected by these upcoming changes. Under this potential revision issued by the DOL you may be entitled to receive overtime pay going forward, regardless if you’re salaried, if you earn $47,476 annually or less. If you have any questions or concerns about how this DOL revision may affect you, do not hesitate to call the employment lawyers of Fitapelli & Schaffer, LLP for a free phone consultation. We can be reached at (212) 300-0375 or by visiting our website.