In March 2019, the Department of Labor (DOL)
issued a Notice of Proposed Rulemaking that signaled its intent
to increase the annual salary threshold applicable to the Fair
Labor Standards Act (FLSA)'s "white collar"
exemptions (e.g., executive, administrative, and
professional).Employees whose salary exceeds this annual salary
threshold are exempt from certain FLSA provisions, including
minimum wage and overtime laws, so long as the employees also meet
the duties' requirement associated with the exemption.
On September 24, 2019, the DOL announced a final version of the rule, set to
take effect on January 1, 2020. Under the final rule, the annual
salary threshold will increase from $455 per week to $684 per week,
or $35,568 on an annual basis.The last increase to annual salary
threshold was in 2004.For employers, this new threshold means that
employees who are currently exempt and receive a salary of less
than $684 per week will, in most cases, become non-exempt
