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

05/20/2016

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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