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DOL Issues Proposed Exempt Salary Rule
The U.S. Department of Labor (DOL) has released its long-anticipated Notice of Proposed Rulemaking regulating who is eligible for overtime pay under the Fair Labor Standards Act (FLSA). The DOL intends to significantly increase the minimum salary for employees to be exempt from overtime to at least $1,059 per week ($55,068 per year) from $684 per week ($35,568 per year). The actual salary level will be based on a percentile of the lowest census region at the time the rule would go into effect which means the salary level could be even higher, upwards of $60,000 per year. In addition, the new rule would establish automatic increases of the salary level every three years based on the same percentile of the lowest census region. However, there were no changes to the duties test included in the proposal; as such, positions properly classified as exempt would remain exempt.
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