DOL to Issue New FLSA Exemption Criteria

In its semi-annual regulatory agenda issued last December, the DOL projected issuing its new criteria for exemption under the Fair Labor Standards Act (FLSA) in April of this year. As explained in the National Law Review,  

“As proposed, the rule sharply increases the minimum salary requirements for the executive, administrative, and professional (EAP) exemptions to apply. The salary threshold would increase from the current $684 per week ($35,568 per year) to $1,059 per week ($55,068 per year)—a 55% increase from the current level. The minimum salary for application of the highly compensated employee (HCE) exemption would jump by 34%, from $107,432 per year to $143,988 per year. However, the DOL has indicated the actual salary threshold will be based on earnings data as of the date the final rule takes effect — which means the salary floor may be even higher than the projected $55,068. That could lift the operative threshold to more than $60,000 annually.” 

However, the agency received over 33,000 comments and has yet to complete reviewing all of them, so the target date may be moved back. The agency is also reviewing the criteria for evaluating status as an independent contractor versus that of employee. That process is apparently in its final stages.