The U.S. Department of Labor ( DOL) announced Wednesday, August 30, a proposed increase to the Fair Labor Standards Act (FLSA) annual salary level threshold. This proposed increase will raise the FLSA’s salary threshold to $55,068; currently the salary threshold is $35,568. The DOL is also proposing automatic increases to the salary threshold every three years.

To be exempt from overtime under the FLSA’s executive administrative or professional exemptions, employees must be paid a salary of at least the threshold amount as well as meet certain duties tests. An employee who does not qualify for one of the exemptions must be paid overtime of 1.5 times their regular hourly rate for hours worked in excess of 40 in a given work week.

It is anticipated that this proposal will face legal challenges. GKH will continue to monitor this proposal and will keep you updated.

This update was prepared by Attorney Jeff Worley. This update does not constitute legal advice and has been prepared for informational purposes only. Please contact us directly with questions about your specific situation.