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DOL Proposes Dramatic Increase in Minimum “Salary” for Exempt Employees

Recently the Department of Labor issued its long awaited proposed regulations raising the minimum salary level that exempt employees must receive under the Fair Labor Standards Act (FLSA).  These regulations are directed at what are commonly the called the “white collar” exemptions, affecting employees in executive, administrative and professional positions.  The increase in that minimum salary is more than twice the current level, and, if retained when the regulation becomes final, will go from $23,660 per year to $50,440 per year.  Although the regulations are not likely to take effect until early to mid 2016, all employers with “exempt” employees earning a salary less than $50,440 per year (exclusive of discretionary bonuses) should immediately begin reviewing how these regulations will affect those employees, and how best to respond to this change.

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