The Rocky Mountain Employer


Labor & Employment Law Updates

DOL to Set White-Collar Exemption Salary at $47,476

The United States Department of Labor’s (“DOL”) Wage and Hour Division will publish its final rule for the White-Collar Exemptions tomorrow, May 18, 2016.  It is expected that the final rule will increase the minimum salary threshold to be exempt from the Fair Labor Standards Act’s overtime requirements from $445 per week (or $23,660 per hear) to $913 per week (or $47,476 per year), which is slightly less than the previously expected $970 per week (or $50,440 per year) (see related article).[1]  While the DOL previously indicated it would give employers only sixty (60) days to comply with the rule (see related article), the final rule will not take effect until December 1, 2016, providing employers nearly 200 days to comply.[2]


[1] Ben Penn, DOL Overtime Rule to Take Effect Dec. 1, Bloomberg BNA Daily Labor Report (May 17, 2016).  It is also anticipated that the minimum salary threshold will be updated every three years as opposed to annually as originally proposed.

[2] Id.