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Sep 2019
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September 25, 2019

New Salary Threshold to Take Effect on January 1

The U.S. Department of Labor (DOL) has issued its long-awaited rule regarding the “white collar” exemption to the Fair Labor Standards Act’s minimum wage and overtime requirements. Under the new rule, the annual salary threshold for executive, administrative and professional exempt employees is $35,568 per year (or $684 per week) — up from the current $23,660 annual salary that was last updated in 2004. The new rule also raises the highly compensated worker compensation threshold to $107,432 from $100,000. No changes were made to the duties tests of the exemption.

The new rule will take effect on January 1, 2020. All employers should audit their payroll and make sure that every exempt employee is paid a salary of at least $35,568 by that date.

If you have questions concerning the new rule and its impact to your business and employees, please contact your Warner attorney or a member of Warner’s Labor and Employment Practice Group.

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