Since 2015, we have been following the saga of the salary threshold for the FLSA’s white-collar exemptions (most of them, at least). In June 2015, the Department of Labor proposed a level of $50,440. When the final rule was published in May 2016, that level turned out to be $47,476. In the Fall of 2016, the regulation was enjoined, keeping the required salary level at $23,660. Then we’ve had an Administration change, a lengthy request for information, and many, many listening sessions.
Shortly, the Department will be publishing a new proposal, with a new minimum threshold of $35,308 ($679/week). Up to 10% of the salary may be made up of nondiscretionary bonuses, with an annual “true-up” to ensure the $35,308 level is met. The standard for the highly compensated employee exemption would rise to $147,414.
The Department did not propose automatic updates to the salary level, but said it was “affirming its intention to propose increasing the earnings thresholds every four years.”
Once the proposal is formally published in the Federal Register, the public will have 60 days to comment on the proposal. The Department will then review the comments and prepare a final rule. In all likelihood, no new salary level will be implemented until at least 2020.
