In a much-anticipated action, the U.S. Department of Labor (DOL) has released the text of a proposed rule to revise its “white collar” overtime regulations. The proposed rule, which has not yet been published in the Federal Register, would among other things increase the standard salary level for white-collar exempt employees from $455/week ($23,660/year) to $679/week ($35,308/year). It would also formally rescind the controversial 2016 revisions to the overtime rules that were made by the Obama Administration, but which were enjoined by a federal court and never went into effect.
In addition to raising the salary threshold, the proposed revisions would also allow employers to count up to 10% of nondiscretionary bonuses and incentive payments (including commissions) towards the salary level for white-collar exempt employees, provided that these payments are made annually or more frequently. In addition, the proposed changes would increase the base salary for highly compensated exempt employees from $100,000/year to $147,414/year. Significantly, the proposal would not index the salary level for inflation as the 2016 revisions would have done, but rather sets up a process for review every four years with notice-and-comment rulemaking.
Once the proposal is formally published in the Federal Register, interested parties will have 60 days to submit written comments.
Members of the Center for Workplace Compliance (CWC) can read more here.