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ARTICLE · 28 JULY 2015

DOL Proposes Exempt Classification Rule

Fenwick
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The federal Department of Labor ("DOL") released a proposed rule to amend the Fair Labor Standards Act's white-collar employee exemptions and the highly compensated employee exemption.

United StatesEmployment and HR
Daniel McCoy
Daniel McCoy
Sheeva Ghassemi
Sheeva Ghassemi
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The federal Department of Labor ("DOL") released a proposed rule to amend the Fair Labor Standards Act's white-collar employee exemptions (i.e., executive, administrative, professional, outside sales, and computer professional) and the highly compensated employee exemption. The rule focuses on the salary thresholds for these exemptions, seeking to increase the white-collar salary minimum from $23,660 to $50,440 (the 40th percentile of weekly earnings for full-time salaried workers) and the highly compensated employee salary minimum from $100,000 to $122,148 (the 90th percentile of weekly earnings for full-time salaried workers), with annual adjustments based on the Consumer Price Index or the percentile of weekly earnings for full-time salaried workers.

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