Back in September (2023), the U.S. Department of Labor published a rule that markedly changed the salary thresholds for some of the key white collar exemptions, including, for example, the executive, administrative, and professional exemptions. In broad strokes, for an employee to qualify for one of these exemptions, they must (a) meet certain job duties requirements and (b) be paid a minimum salary, week in and week out. The DOL’s proposed rule would change the current minimum salary (of $684) by over 50%.
Recently, the DOL’s Wage and Hour Division took some final steps in connection with the administrative regulatory process, which strongly suggests the agency is poised to release the rule – and soon. What we don’t know is whether and to what extent the proposed rule changed as a result of the tens of thousands of responses the DOL received during the proposed rule’s comment period. The initial draft of the rule set an effective date sixty days from publication, and that may change too.
Bottom Line
What this all means is that employers may be forced to contend with a new set of (very different) minimum salary requirements within approximately the next ninety days. Fasten your seatbelt … and stay tuned.
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