New Salary Level For White Collar Exemptions Not Effective Until December 1, 2016

Today the Department of Labor’s new rules regarding the white collar exemptions became final.  The new salary level to qualify for the Professional, Executive or Administrative exemption is $47,476 per year, about $3000 lower than what was proposed ($50,440).  For the “Highly Compensated” exemption, the new salary is $134,000, increased from $100,000.  *Importantly and on a positive note, the DOL has given employers until December 1, 2016 to comply with these changes.*

No changes were made to the “duties tests” for the white collar exemptions.  This is also a positive for employers given that the DOL was considering making those tests harder to satisfy.  (Employees must satisfy both the salary test and the duties test to be properly classified as exempt.)

Leave a Reply

Your email address will not be published. Required fields are marked *