Highly Anticipated Proposed Changes To FLSA White Collar Exemptions Released

Today the U.S. Department of Labor ("DOL") unveiled its long anticipated proposed rule that will, if enacted, raise the minimum salary threshold required to qualify for exemption from the Fair Labor Standards Act's ("FLSA") minimum wage and overtime requirements. The proposal seeks to increase the current minimum salary requirement for the executive, administrative, professional, and computer employee exemptions from $455 per week ($23,660 per year) to $970 per week ($50,440 per year). The proposed rule also seeks to increase the threshold for exemption as a "highly compensated employee" ("HCE") from $100,000 to at least $122,148. Both the minimum salary level for exemption and the HCE threshold would be increased on an annual basis after the new regulations become effective, under the DOL's proposal. The DOL projects that, if enacted, 4.7 million workers will be affected by these changes.