Specifically, the DOLs proposed rule would raise the pay level required for an employer to qualify white collar employees for the exemption from $455/week ($23,660 annually) to $921/week ($47,892 annually). And the proposed rule would also change the exempt salary limits from being a fixed amount (which has not changed in over ten years) to a dynamic one that would be indexed annually to U.S. wage rates. If the rule is implemented as proposed employers who have a large number of lower-salaried managers, which tends to be especially true of the retail, service, and restaurant industries, may face substantial cost increases based on overtime expenses. Employers may be able to avoid or alleviate these increases, however, with proper planning and management. Additionally, employers will need to conduct annual monitoring of their employees wage and hour classification and exemption status due to the new indexing of the qualifying salary level.
Mark Mathison advises and represents a wide range of employers, including corporations, nonprofits, and educational organizations, on labor and employment law issues in the workplace. Mark’s practice has a significant focus ...
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