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August 1st, 2017
employment
DEPARTMENT OF LABOR RECONSIDERING MINIMUM SALARY FOR WHITE COLLAR EXEMPTION

Since November 2016, a nationwide injunction has prevented the Obama Administration’s new overtime rule for white collar workers from going into effect.  The Obama-era rule, which increase the minimum annual salary required to support exempt status from $23,660.00 to $47,476.00, was poised to convert millions of employees from exempt to non-exempt from the FLSA’s overtime rules.  Many employers re-classified employees, increased salaries or both in an effort to comply with the new standard, which was scheduled to take effect in December 2016.  Since the injunction, those same employers have awaited clarification on whether the rule, or a modified version, would go into effect. 

Based on a brief filed with the Fifth Circuit by the United States Department of Labor (“DOL”) on June 30, 2017, it appears the DOL will continue to pursue its authority to set a salary minimum for the white collar exemption.  It also appears that if granted the authority to set a minimum, the DOL will set a minimum perhaps appreciably lower than the $47,476.00 chosen by the former administration. 

Ultimately, employers will continue to await a decision regarding what if any new salary minimum may be promulgated.  However, for the time being, it appears that any change to the standard will not be as significant as the previously anticipated increase.

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