U.S. Department of Labor has brought back the proposal previously set forth during the Obama Administration in late 2016. The Department of labor is readjusting the proposal for annual salaried “exempt” employees. The new proposal would require employers to pay a minimum salary of $35,308 to white-collar workers that classify themselves as “exempt” from overtime pay.

Since 2004 no changes have been made to the salaried “exempt” wage threshold which now requires employers to pay salaried “exempt” employees no less than $455.00/week or $23,660.00/annually.  The proposed legislation would require employers to pay a minimum salaried “exempt” employee who meets the requirements of a White-Collar worker (executives, administrative and professional employees) to be paid a minimum salary of $679.00/week  or $35,308.00/annually. Employees that do not meet the White Collar classification will be eligible for overtime compensation paid at the time and one-half times their normal rate of pay.

This proposed legislation is yet to be voted on however now is a good time to prepare for the future possibility of this legislation passing. We will keep you updated.


Sources: U.S. Department of Labor