U.S. Department of Labor Update – Overtime Exemptions

U.S. Department of Labor Update – Overtime Exemptions
March 12, 2019 dmock2015

 

Photo Source: Creative Commons Zero (CCO)

On March 7, 2019, the U.S. Department of Labor (DOL) announced a proposed rule that would increase the minimum salary applicable to federal “white collar” exemptions from overtime. If enacted, the minimum salary for exempt employees would increase from $455 per week (or $23,660 annually) to $679 per week (or $35,308 annually). Despite the increase, employees would still need to meet the duties test for the applicable overtime exemption.

The proposal also increases the total annual compensation requirement for “highly compensated employees” (HCE) from the currently-enforced level of $100,000 to $147,414 per year.

More information on the proposed rule is available here.

However, please remember that more stringent state laws governing overtime exemption rules control. For example, under California law, the minimum salary for the “white collar” exemptions is two times the minimum wage – or $49,920 in 2019.

______________________________________________________________________

Legal Disclaimer:

This matieral is provided for informational purposes only and does not constitute legal advice. The transmission of information on this blog is not intended to establish, and receipt of such information does not establish or constitute, an attorney-client relationship. You should not act or rely on any information contained on this blog without first seeking the advice of an attorney.
 
This blog is not intended to be advertising, and Delfino Madden O’Malley Coyle & Koewler LLP does not desire to represent anyone desiring representation based upon viewing this blog or any articles contained on this blog in a jurisdiction where this email fails to comply with all laws and ethical rules of that jurisdiction.