Proposal Subject to Change

The U.S. Department of Labor (DOL) is proposing to change the minimum salary that administrative, computer, executive, professional, and “highly compensated” employees must receive in order to be exempt from overtime pay under federal law. Under the proposal:

• The minimum salary required for an administrative, computer, executive, or professional employee to be exempt would increase from $455 to $679 per week.
• The total annual compensation required for “highly compensated employees” to be exempt would increase from $100,000 per year (including at least $455 per week) to $147,414 per year (including at least $679 per week).
• Employers would be able to count certain bonus and incentive payments (including commissions) toward a portion of the salary level.

Though this proposal is still subject to change, the DOL currently anticipates changes to the salary levels to become effective in January 2020.

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