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Proposed Salary Threshold Changes - Dept. of Labor (DOL) - HR ALERTS

Federal Proposed Salary Threshold Changes

HR Alerts : Vida HR Knowledge Center

The Department of Labor (DOL) has recently announced proposed changes to the current minimum salary threshold for employees exempt from overtime. Currently, exempt employees (specifically employees that are considered an executive, administrative, or professional employee as defined in the Federal Labor Standards Act, or FLSA) have to be paid at least $684 per week, or $35,568 per year. The proposed changes would increase this amount to $1,059 per week, or $55,068 per year. Similarly, under the FLSA, there is an exemption from overtime for highly compensated employees which, among other criteria, must be paid at least $107,432 per year. The proposed changes would increase that amount to $143,988 per year.

While the proposed changes are a significant increase, it is important to remember that certain states have laws that already require employees to pay above the federal standard. In Colorado, for example, the current minimum salary threshold is $50,000 per year. Still, these changes would bring the threshold up for most states. These changes are not in effect yet, but the DOL published the proposed rule soon and a 60 day comment period has been opened. After comment period ends, the DOL will review the feedback and publish the final rule. While employers do not need to act yet, they should start preparing a plan should the changes pass. The comment period can be found here.

For questions or concerns, employers should reach out to their Vida HR Business Partner to see what these changes might mean for them. Get day-to-day updates on proposed salary threshold changes the Vida HR Knowledge Center (Vida HR Clients Exclusive).


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