Filter By Service Area
Filter By Title
Filter By Office

Resources

Department of Labor Proposes to Increase Minimum Salary Requirement, This Will Not Be a Good Thing for Many Employers

Well, it finally happened; the U.S. Department of Labor has issued a proposal to raise the minimum salary threshold for exempt employees – a move that is expected to result in many formerly exempt employees being eligible for overtime. The DOL proposes to raise the exempt salary threshold from $684 per week to $1,059, meaning employees would need to earn $55,068 or more per year to be exempt from overtime pay. The rule would automatically update the salary level every three years and increase the threshold for highly compensated employees from $107,432 to $143,988.

Employers should take steps now in anticipation of the new rule. For example:

  • Determine which of your exempt employees currently make less than $1,059 per week, and if it would be more economical to raise their salary to the minimum level or pay them overtime.

  • Prepare to track the working time of workers who transition to non-exempt. (This would be an opportune time to conduct refresher training regarding the qualifications to be exempt, what working time, and the calculation of the minimum rate of pay.) 

  • Determine if any of the employees making less than $1,059 per week are under any sort of contract that will be impacted by a change in their compensation. (Remember, an employee and employer cannot contract to treat the employee as exempt unless the employee actually meets the legal requirements of an exempt worker, including meeting the minimum salary threshold.)  

  • Will the employee’s entitlement to certain benefits be altered if they move from an exempt to non-exempt position?

  • If a worker transitions from exempt to non-exempt, their managers need to be trained in maximizing and tracking their working time since they will now be entitled to OT.

While this is just a proposal at this point, you should expect the DOL to push the rule through quickly. Although it is certain to face legal challenges, it is possible that the final rule could go into effect early in 2024.

Department of Labor Proposes to Increase Minimum Salary Requirement, This Will Not Be a Good Thing for Many Employers

Well, it finally happened; the U.S. Department of Labor has issued a proposal to raise the minimum salary threshold for exempt employees – a move that is expected to result in many formerly exempt employees being eligible for overtime. The DOL proposes to raise the exempt salary threshold from $684 per week to $1,059, meaning employees would need to earn $55,068 or more per year to be exempt from overtime pay. The rule would automatically update the salary level every three years and increase the threshold for highly compensated employees from $107,432 to $143,988.

Employers should take steps now in anticipation of the new rule. For example:

  • Determine which of your exempt employees currently make less than $1,059 per week, and if it would be more economical to raise their salary to the minimum level or pay them overtime.

  • Prepare to track the working time of workers who transition to non-exempt. (This would be an opportune time to conduct refresher training regarding the qualifications to be exempt, what working time, and the calculation of the minimum rate of pay.) 

  • Determine if any of the employees making less than $1,059 per week are under any sort of contract that will be impacted by a change in their compensation. (Remember, an employee and employer cannot contract to treat the employee as exempt unless the employee actually meets the legal requirements of an exempt worker, including meeting the minimum salary threshold.)  

  • Will the employee’s entitlement to certain benefits be altered if they move from an exempt to non-exempt position?

  • If a worker transitions from exempt to non-exempt, their managers need to be trained in maximizing and tracking their working time since they will now be entitled to OT.

While this is just a proposal at this point, you should expect the DOL to push the rule through quickly. Although it is certain to face legal challenges, it is possible that the final rule could go into effect early in 2024.

Department of Labor Proposes to Increase Minimum Salary Requirement, This Will Not Be a Good Thing for Many Employers

Well, it finally happened; the U.S. Department of Labor has issued a proposal to raise the minimum salary threshold for exempt employees – a move that is expected to result in many formerly exempt employees being eligible for overtime. The DOL proposes to raise the exempt salary threshold from $684 per week to $1,059, meaning employees would need to earn $55,068 or more per year to be exempt from overtime pay. The rule would automatically update the salary level every three years and increase the threshold for highly compensated employees from $107,432 to $143,988.

Employers should take steps now in anticipation of the new rule. For example:

  • Determine which of your exempt employees currently make less than $1,059 per week, and if it would be more economical to raise their salary to the minimum level or pay them overtime.

  • Prepare to track the working time of workers who transition to non-exempt. (This would be an opportune time to conduct refresher training regarding the qualifications to be exempt, what working time, and the calculation of the minimum rate of pay.) 

  • Determine if any of the employees making less than $1,059 per week are under any sort of contract that will be impacted by a change in their compensation. (Remember, an employee and employer cannot contract to treat the employee as exempt unless the employee actually meets the legal requirements of an exempt worker, including meeting the minimum salary threshold.)  

  • Will the employee’s entitlement to certain benefits be altered if they move from an exempt to non-exempt position?

  • If a worker transitions from exempt to non-exempt, their managers need to be trained in maximizing and tracking their working time since they will now be entitled to OT.

While this is just a proposal at this point, you should expect the DOL to push the rule through quickly. Although it is certain to face legal challenges, it is possible that the final rule could go into effect early in 2024.

Department of Labor Proposes to Increase Minimum Salary Requirement, This Will Not Be a Good Thing for Many Employers

Well, it finally happened; the U.S. Department of Labor has issued a proposal to raise the minimum salary threshold for exempt employees – a move that is expected to result in many formerly exempt employees being eligible for overtime. The DOL proposes to raise the exempt salary threshold from $684 per week to $1,059, meaning employees would need to earn $55,068 or more per year to be exempt from overtime pay. The rule would automatically update the salary level every three years and increase the threshold for highly compensated employees from $107,432 to $143,988.

Employers should take steps now in anticipation of the new rule. For example:

  • Determine which of your exempt employees currently make less than $1,059 per week, and if it would be more economical to raise their salary to the minimum level or pay them overtime.

  • Prepare to track the working time of workers who transition to non-exempt. (This would be an opportune time to conduct refresher training regarding the qualifications to be exempt, what working time, and the calculation of the minimum rate of pay.) 

  • Determine if any of the employees making less than $1,059 per week are under any sort of contract that will be impacted by a change in their compensation. (Remember, an employee and employer cannot contract to treat the employee as exempt unless the employee actually meets the legal requirements of an exempt worker, including meeting the minimum salary threshold.)  

  • Will the employee’s entitlement to certain benefits be altered if they move from an exempt to non-exempt position?

  • If a worker transitions from exempt to non-exempt, their managers need to be trained in maximizing and tracking their working time since they will now be entitled to OT.

While this is just a proposal at this point, you should expect the DOL to push the rule through quickly. Although it is certain to face legal challenges, it is possible that the final rule could go into effect early in 2024.

Department of Labor Proposes to Increase Minimum Salary Requirement, This Will Not Be a Good Thing for Many Employers

Well, it finally happened; the U.S. Department of Labor has issued a proposal to raise the minimum salary threshold for exempt employees – a move that is expected to result in many formerly exempt employees being eligible for overtime. The DOL proposes to raise the exempt salary threshold from $684 per week to $1,059, meaning employees would need to earn $55,068 or more per year to be exempt from overtime pay. The rule would automatically update the salary level every three years and increase the threshold for highly compensated employees from $107,432 to $143,988.

Employers should take steps now in anticipation of the new rule. For example:

  • Determine which of your exempt employees currently make less than $1,059 per week, and if it would be more economical to raise their salary to the minimum level or pay them overtime.

  • Prepare to track the working time of workers who transition to non-exempt. (This would be an opportune time to conduct refresher training regarding the qualifications to be exempt, what working time, and the calculation of the minimum rate of pay.) 

  • Determine if any of the employees making less than $1,059 per week are under any sort of contract that will be impacted by a change in their compensation. (Remember, an employee and employer cannot contract to treat the employee as exempt unless the employee actually meets the legal requirements of an exempt worker, including meeting the minimum salary threshold.)  

  • Will the employee’s entitlement to certain benefits be altered if they move from an exempt to non-exempt position?

  • If a worker transitions from exempt to non-exempt, their managers need to be trained in maximizing and tracking their working time since they will now be entitled to OT.

While this is just a proposal at this point, you should expect the DOL to push the rule through quickly. Although it is certain to face legal challenges, it is possible that the final rule could go into effect early in 2024.

Department of Labor Proposes to Increase Minimum Salary Requirement, This Will Not Be a Good Thing for Many Employers

Well, it finally happened; the U.S. Department of Labor has issued a proposal to raise the minimum salary threshold for exempt employees – a move that is expected to result in many formerly exempt employees being eligible for overtime. The DOL proposes to raise the exempt salary threshold from $684 per week to $1,059, meaning employees would need to earn $55,068 or more per year to be exempt from overtime pay. The rule would automatically update the salary level every three years and increase the threshold for highly compensated employees from $107,432 to $143,988.

Employers should take steps now in anticipation of the new rule. For example:

  • Determine which of your exempt employees currently make less than $1,059 per week, and if it would be more economical to raise their salary to the minimum level or pay them overtime.

  • Prepare to track the working time of workers who transition to non-exempt. (This would be an opportune time to conduct refresher training regarding the qualifications to be exempt, what working time, and the calculation of the minimum rate of pay.) 

  • Determine if any of the employees making less than $1,059 per week are under any sort of contract that will be impacted by a change in their compensation. (Remember, an employee and employer cannot contract to treat the employee as exempt unless the employee actually meets the legal requirements of an exempt worker, including meeting the minimum salary threshold.)  

  • Will the employee’s entitlement to certain benefits be altered if they move from an exempt to non-exempt position?

  • If a worker transitions from exempt to non-exempt, their managers need to be trained in maximizing and tracking their working time since they will now be entitled to OT.

While this is just a proposal at this point, you should expect the DOL to push the rule through quickly. Although it is certain to face legal challenges, it is possible that the final rule could go into effect early in 2024.