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ARTICLE · 12 SEPTEMBER 2023

Changes May Be Coming To White-Collar Exemption Salary Thresholds

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
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Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

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The U.S. Department of Labor (the "DOL") recently announced a Notice of Proposed Rulemaking, which could make at least 3 million more lower-wage workers overtime-eligible.

United StatesEmployment and HR
Michael Arnold
Michael Arnold
Kathryn R. Droumbakis
Kathryn R. Droumbakis
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The U.S. Department of Labor (the "DOL") recently announced a Notice of Proposed Rulemaking, which could make at least 3 million more lower-wage workers overtime-eligible.

The Current Regulations

Under the Fair Labor Standards Act ("FLSA"), employees are overtime exempt if they are employed in a bona fide executive, administrative or professional capacity as defined in the DOL's regulations (known as the "white-collar exemptions"). Currently, to fall within one of these white-collar exemptions an employee must: (i) be paid a salary that amounts to a minimum of $684 per week; and (ii) primarily perform executive, administrative or professional duties as provided in the DOL's regulations. The regulations contain a separate exemption for highly compensated employees (the "HCE exemption"), which sets a compensation threshold of $107,432 per year (including at least $684 per week). The DOL last updated these salary thresholds back in 2019 (effective January 1, 2020)

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