In May 2016, the Department of Labor issued its controversial revisions to the white collar exemptions of the overtime regulations, more than doubling the minimum salary required for exemption; going from $455/wk. ($23,680/yr.) to $913/wk. ($47,476/yr.). A court in Texas subsequently found the rule invalid, and employers have been awaiting the Trump administration’s position on the issue ever since. The wait is now over, at least at the moment.

The DOL just issued a Notice of Proposed Rulemaking, proposing to set the minimum salary requirement at $679/wk. ($35,308/yr.) – essentially the midpoint between the current requirement and the 2016 rule, up to 10% of which may be satisfied by non-discretionary bonuses and incentive payments (including commissions). The rule also raises the minimum salary requirement for highly compensated employees (who need only perform one or more exempt duties) from a total annual compensation of $100,000 to $147,414. Lastly, the rule proposes to review the minimum salary levels every four years.

Recognize that the NPRM is not final. It simply seeks comments on the proposal, after which a final rule will be issued. It does, however, give employers a better idea of what will likely be coming in the not so distant future.

Questions? Contact attorney Alan Seneczko in our Wisconsin office at (262) 560-9696 or by email at alseneczko@wesselssherman.com