The United States Department of Labor (DOL) recently issued proposed rules on the salary test for employees that are exempt from overtime requirements. Exempt employees must be paid regardless of how much or how little work they performed in a day. The current minimum salary of an exempt employee is at least $455 per week. There are other requirements for an employee to be exempt such as the type of work. A good resource is the s flowchart that provides a more detailed explanation.
The DOL notes that the salary level of exempt employees was last set in 2004 and is updated whenever new rules are set. In the proposed rules the DOL signals their intention “…to set the standard salary level equal to the 40th percentile of earnings for full-time salaried workers ($921 per week, or $47,892 annually for a full-year worker, in 2013).” The revised salary standard would about double the current salary test. Additionally the “40th percentile of earnings” would increase the floor yearly, assuming average wages continue to increase.
The DOL is accepting input on these proposed rules through September 4th of this year. It is likely that there will be some time before new rules are issued. Stay tuned and we will keep you updated on this topic.