As a result of proposed new Fair Labor Standards Act regulations, the minimum salary level for exempt status would increase to $913 per week, which is equivalent to $47,476 per year. The proposed new regulations also established a mechanism for automatically updating the salary level every three years, with the first update to take place in 2020.
This proposed increase is troubling to many employers, especially in the current economic climate, as it will make many more employees eligible for overtime payments.
There also is a separate exemption for “highly compensated” employees. Currently, for an employee to qualify for such an exemption, he or she must earn total annual compensation of at least $100,000 (of which at least $455 per week must be paid on a salary basis); his or her primary duty must include performing office or non-manual work; and he or she must customarily and regularly perform at least one of the exempt duties of an exempt executive, administrative or professional employee.
The new regulations would increase the total minimum annual compensation level to $134,004 (of which at least $913 per week must be paid on a salary basis).
If you would like more information or to discuss any of the above issues, or other Labor and Employment law matters, please feel free to contact Braverman, PLLC. Daniel S. Braverman, Esq. and his law firm practice Labor & Employment Law, and zealously represent companies in all aspects of the employment relationship, with a particular emphasis on helping companies avoid and quickly resolve labor and employment disputes. Mr. Braverman can be reached at 212-233-2910 (tel.) or firstname.lastname@example.org (e-mail).