They're Here: White Collar Exemption Revisions Announced

The Department of Labor's long-awaited revisions to the Fair Labor Standards Act's white collar exemption were published earlier today.  Here are the bottom line changes:

• The new salary level required for the executive, administrative, and professional exemptions will be $913 per week, which translates to $47,476 per year.
• Up to 10% of the salary level can be met with bonuses and commissions. For employers to credit nondiscretionary bonuses and incentive payments toward a portion of the standard salary level test, however, such payments must be paid on a quarterly or more frequent basis.  Thus, an employer may pay an exempt employee working under an incentive plan 90% of the salary level.  At the conclusion of the quarter, if the employee has not received bonuses or commissions equaling or exceeding 10% of the salary level for 13 weeks, an employer may make a "catch-up" payment within one pay period after the end of the quarter.