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Department of Labor Issues Final Rule on Pay – Substantially Raising Minimum Salary Threshold to Qualify for Overtime Exemption

On May 20, 2016 by Schnader

The minimum salary threshold for employees to be considered overtime “exempt” under the Fair Labor Standards Act (“FLSA”) will double beginning December 1 under a final rule announced this week by the U.S. Department of Labor. Under the new rule, which will be published on May 23, 2016:

  • The minimum salary threshold for overtime exempt status for “executive,” “administrative,” and “professional” classifications in-creases from $455 per week to $913 per week ($47,476 per annum);
  • The minimum salary threshold will be adjusted automatically every three years; and 
  • There is no change in the “duties test.”

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