“It is difficult to get a man to understand something when his salary depends upon his not understanding it.”
– Upton Sinclair
On March 7, 2019, the Department of Labor (DOL) issued a proposed rule that would change the salary thresholds for the “white collar” overtime exemptions under the Fair Labor Standards Act (FLSA). Under the proposal, the minimum salary level for executive, administrative and professional employees would increase from $455 to $679 per week ($35,308 per year). This is significantly lower than the $913 salary level set in the 2016 final rule (which never took effect due to an injunction).
The proposal would allow employers to use non-discretionary bonuses and incentive payments (including commissions) that are paid annually or more frequently to satisfy up to 10 percent of the standard salary level. The minimum salary level for highly compensated employees would also increase from $100,000 to $147,414 per year (an increase from the 2016 final rule’s annual threshold of $134,004).*
The DOL is currently looking for public comment on this issue so BenefitCorp clients do not need to make any changes to their current payroll system. However, if you have had recently had your payroll system audited for compliance or WOTC tax credits, contact a BenefitCorp consultant here.
*Content Provided by https://www.zywave.com/