09/12/2023
DOL Proposal Increases Overtime Salary Threshold
On August 30, 2023, the DOL Wage and Hour Division announced a Notice of Proposed Rulemaking (NPRM), Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales, and Computer Employees.
The proposed changes would:
- Increase the minimum salary threshold (the "standard salary level") for the executive, administrative, and professional (EAP) exemptions under the FLSA from $684 to $1,059 a week.
- Increase the total annual compensation requirement for the highly compensated employee (HCE) exemption under the FLSA from $107,432 to $143,988.
- Increase the minimum salary threshold for EAP exemptions in American Samoa from $380 to $890 a week.
- Eliminate the special minimum salary threshold for EAP exemptions in the Commonwealth of the Northern Mariana Islands, Guam, Puerto Rico, and the U.S. Virgin Islands.
- Increase the base rate for EAP exempt employees in the motion picture producing industry from $1,043 to $1,617 a week.
- Automatically update earnings thresholds every three years.
The agency provides additional information on its webpage, Proposal: Restoring and Extending Overtime Protections, including frequently asked questions about the proposed rule.
The public comment period will close at 11:59 PM on November 7, 2023.