The Department of Labor has finally released the updated figures for the salary basis test under the Fair Labor Standards Act (FLSA). In the previous article regarding the salary basis test for the FLSA white collar exemptions, I noted that there was some uncertainty regarding the current state of the law. For years, the minimum weekly salary to qualify as overtime-exempt under the white collar exemptions had been $455 a week – or $23,660 per year. Many commentators have called for an increase over the years and, in 2016, the Department of Labor proposed an increase to $913 per week ($47,476 per year). This increase was struck down by the courts in November 2016, and the minimum salary basis remained $455. Ever since then, the Department of Labor has repeatedly hinted that another increase was coming — more than $455 per week, but less than $913 per week. This week, the updated numbers were released.
Earlier this week, the new proposed figure was finally released – $684 per week, or $35,568 per year. This is almost exactly the midpoint of the $455 and $913 figures — in essence, the DOL has split the baby. Interestingly, the regulation also provides for future scheduled increases, although any further increases will also be subject to public notice and comment period before going into effect. (Further Update: these scheduled future increases were later struck down by a federal court in November 2024).
If you have any questions about the salary basis test, or the FLSA overtime exemptions in general, please call New Orleans overtime lawyer Charles Stiegler at (504) 267-0777 or email me today.