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ARTICLE · 21 NOVEMBER 2017

Salary-Threshold Autopilot Still Possible

Fisher Phillips LLP
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A BloombergBNA report suggests that the U.S. Department of Labor is seriously considering retaining the Obama Administration's procedure (or something like it) for automatic "updates" ...

United StatesEmployment and HR
John Thompson
John Thompson
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A BloombergBNA report suggests that the U.S. Department of Labor is seriously considering retaining the Obama Administration's procedure (or something like it) for automatic "updates" to the compensation thresholds specified in the federal Fair Labor Standards Act's Section 13(a)(1) exemption regulations.  Apparently, U.S. Labor Secretary Acosta recently revealed this in closed-door remarks to the U.S. Chamber of Commerce. 

Every indication so far is that USDOL has used "update" as a euphemism for "increase". 

USDOL's Request for Information published in July asked, "Should the standard salary level and the highly compensated employee total annual compensation level be automatically updated on a periodic basis to ensure that they remain effective, in combination with their respective duties tests, at identifying exempt employees?"  Many respondents argued that the correct answer is, "No".

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