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October 10, 2019 News

CLIENT ALERT: DOL Releases Highly Anticipated Final Rule Setting Forth Minimum Salary Thresholds for Exempt Employees

October 10, 2019 – The U.S. Department of Labor unveiled the final version of its highly anticipated overtime rule raising the federal minimum salary threshold (or so-called “salary level” test) for “white collar” overtime exemptions under the Fair Labor Standards Act (“FLSA”). The rule also raises the salary threshold for “highly compensated employees” (“HCE”) and, in so doing, provides employers the option to count certain nondiscretionary bonus, incentive, or commission compensation as constituting up to 10 percent of an employee’s salary for purposes of meeting the HCE threshold.

While those employers subject to New York State law are likely already in compliance with the higher thresholds required to classify employees as exempt under either the salary or HCE tests, those employing workforces outside New York (or other states which have higher thresholds in place than those proposed under federal law) must familiarize themselves with this new federal rule, and review the salaries paid to certain employees, as well as the classification of certain positions as exempt accordingly. 

The attached Client Alert provides details and analysis of the new federal minimum salary threshold for white collar overtime exemptions and for highly compensated employees, which will take effect on January 1, 2020.

PDF of Client Alert:  CLIENT ALERT:  DOL Releases Highly Anticipated Final Rule Setting Forth Minimum Salary Thresholds for Exempt Employees