On March 22, 2019, the DOL’s Wage and Hour Division will publish in the Federal Register its proposed rule to revise the overtime exemption regulations for executive, administrative, professional, outside sales and computer employees. As we previously discussed, the DOL is proposing to increase the minimum salary for exemption from $455 per week ($23,660 annualized) to $679 per week ($35,308 annualized). Employees with total annual compensation of $147,414 (including at least $679 per week paid on a salary basis)–up from the current $100,000 total annual compensation–would qualify for exemption under the test for highly compensated employees (HCE). These changes would require employers to significantly revamp their payment structures for employees in those groups. The 60-day period to comment on the rule closes on May 21, 2019.
Affected employers are encouraged to submit comments on the rule by going to www.regulations.com and searching for 1235-AA20. Littler will be filing comments as well. Employers interesting in providing their input or expressing any concerns with the proposal can contact the author.
