So far, the U.S. Department of Labor (DOL) has received more than 55,000 comments on its proposed rule to increase the minimum salary level for the Fair Labor Standards Act (FLSA) white collar exemptions. The comment period closes on May 21.
The proposal would increase the minimum salary level from $455 to $679 per week (or from $23,660 per year to $35,308 per year) with an anticipated start date of January 2020. The proposed required amount of compensation per week may be translated into equivalent amounts for longer periods: biweekly on a salary basis of $1,358, semimonthly on a salary basis of $1,471, or monthly on a salary basis of $2,942.
Other Provisions
The proposed rule also:
- Increases the salary requirement for Highly Compensated Employees from $100,000 to $147,414 per year.
- Allows employers to use nondiscretionary bonuses and incentives (including commissions) paid at least annually to satisfy up to 10% of the standard salary level.
- Creates special salary levels for Puerto Rico, the Virgin Islands, Guam, and the Commonwealth of the Northern Mariana Islands, and adds a separate special salary level for American Samoa.
Comments By May 21
Comments on the proposed rule must be received by May 21, 2019. Comments identified by Regulatory Information Number (RIN) 1235-AA20 can be submitted through the Federal eRulemaking Portal or by mail to: Melissa Smith, Director of the Division of Regulations, Legislation, and Interpretation, Wage and Hour Division, U.S. Department of Labor, Room S-3502, 200 Constitution Avenue N.W., Washington, DC 20210.
To learn more about federal and state laws, regulations, and information to keep your company's payroll operations in compliance, check out Payroll Source Plus!
