Category Archives: *New Exemption Rules

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New Rules Announced: $47,476 Minimum Salary, Effective 12/1/2016

Late yesterday the White House and Department of Labor released key details of the new FLSA overtime exemption rules for white collar workers. The final rules themselves have just been released this morning.  We are still digesting 500-plus page final rules, but the key points are as follows: Effective Date: December 1, 2016. Note that this is … Continue Reading

Details of New Overtime Exemption Rules Begin To Emerge

Bloomberg BNA is reporting (subscription required) that according to a “source familiar with the situation,” the DOL’s new overtime exemption rules will take effect on December 1. The new minimum salary for exempt executive, administrative and professional employees will be $913 per week or $47,476 per year. That’s still more than double the current $455 per week, … Continue Reading

Can We Have Both Exempt and Non-Exempt Employees With The Same Job Title?

As employers try to figure out how to cope with the coming increase in the minimum salary for the executive, administrative and professional employees, some find themselves with job classifications where the salary scale straddles the new line between exempt and non-exempt. Can employers in this situation categorize employees whose compensation falls below the line … Continue Reading

Will The New Minimum Salary Be Pro-Rated for Part-Time Exempt Employees?

No. I’ve received this question from several blog readers and clients recently, and on its face it makes some sense. After all, you don’t pay full salary to someone who is only working for you part-time, so it only makes sense that the minimum salary for the executive, administrative and professional exemptions under the FLSA should also … Continue Reading

New Salary Threshold May Be About $47,000

According to a report from Bloomberg BNA, unnamed DOL staffers have stated that the salary threshold in the hotly anticipated FLSA exemption rules will be about $47,000 per year, down slightly from the $50,440 level suggested by the proposed rules published last summer. This is  not an official announcement, so while the statement may well be … Continue Reading

Continued Controversy Surrounding The Proposed New Overtime Rule

Since June, we have written a number of posts covering the Department of Labor’s proposed new overtime rule (see our posts here), and the more than doubling of the salary level threshold for white collar exempt positions. The proposed increase in the salary threshold was quite polarizing and resulted in nearly 300,000 comments. Despite the … Continue Reading

New FLSA Exemption Rules - Coming In July?

Over the last few months we’ve been asked on an almost daily basis when the DOL will be publishing its hotly anticipated white collar exemption rules. The short answer is still, we don’t know. A few months ago, the word was “late 2016,” which made some sense due to the extremely high volume of comments the DOL … Continue Reading

New Exemption Rules May Be Delayed To Late 2016

Waiting is the hardest part.  Ever since the Department of Labor issued its proposal to substantially increase the minimum salary level needed to classify an employee as an exempt executive, administrative or professional employee, employers have been asking when the new rules will take effect. This is not an academic question: many organizations have long … Continue Reading

DOL Will Not Extend Comment Period on Proposed Regulations

In July, we wrote about the Department of Labor’s proposed changes to the regulations governing the white collar exemptions of the Fair Labor Standards Act. The current regulations governing these exemptions—executive, administrative, and professional—include a salary basis test by which to determine if an employee meets one of these exemptions. The salary basis test currently … Continue Reading

Webinar Follow-Up: New DOL Overtime Exemption Rules and Independent Contractor Guidance

Thanks to all of our clients and friends for such a great turnout at today’s webinar on the new DOL overtime exemption rules and the Administrator’s Interpretation on independent contractors. In case you missed the webinar, or if you just want to go back and review the materials and recording, you can find both an … Continue Reading

Wage and Hour Basics Series: The "Fee Basis" and the Proposed FLSA Regulations

As we have discussed in the past, to be eligible for one of the “white collar” exemptions (executive, administrative, or professional) or as a highly compensated employee (HCE), Section 541.600 of the FLSA regulations requires employers to compensate employees on a salary basis (currently $455 for white collar exemptions, but likely rising to around $970, … Continue Reading

Answering Your Questions about the New FLSA Regulations [Wage & Hour FAQ]

As you undoubtedly know by now, the Department of Labor’s Wage & Hour Division (WHD) finally announced its long-promised proposal to amend the Fair Labor Standards Act (FLSA) Regulations and, in particular, those governing the “white collar” exemption for executive, administrative, and professional employees. For our comprehensive discussion of the changes in the DOL’s Notice … Continue Reading

The DOL's Surprising Conclusion about Employers in the New FLSA Regulations

Last week, the Department of Labor’s Wage & Hour Division (WHD) finally announced its long-promised proposal to amend the Fair Labor Standards Act (FLSA) Regulations and, in particular, those governing the “white collar” exemption for executive, administrative, and professional employees. For our comprehensive discussion of the changes in the DOL’s Notice of Proposed Rulemaking (NPRM), … Continue Reading

The New FLSA Regulations: What Changed, What Didn't, What's Next for Employers

Note: This post relates to the Department of Labor’s proposed rules issued in 2015. For a summary of the final rules issued May 18, 2016, please check out this post, and see this post for a link to the recording of our May 23, 2016 webinar. This morning, the Department of Labor’s Wage & Hour Division … Continue Reading

New FLSA Regulations Released, Salary Threshold Doubled

UPDATED: For an updated entry, click here. Since last spring, we have been following developments in the oft-delayed Fair Labor Standards Act (FLSA) regulations rewrite by the Department of Labor (DOL). The Office of Management and Budget’s Office of Information and Regulatory Affairs (OIRA) has now completed its review, and the Department of Labor finally … Continue Reading
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