The U.S. Department of Labor issued proposed rules increasing the minimum salary for exempt employees from $23,660 (or $455 per week) per year to $50,440 per year (or $970 per week). For more information about the proposed rules, go here.
The proposed regulations would alter what is typically called the "salary basis test." Under current law, exempt employees need to earn at least $455 per week to maintain exempt status. Under the proposed rules, that amount would more than double to $970 per week. In addition, this new amount would be tracked to other increases to adjust over time, and the DOL would be able to update the salary basis amount on an ongoing basis without new rulemaking.
If approved, the new regulations would be a major victory for workers, and would impact millions of low and middle income families current paid on a salary basis who are classified as exempt and not entitled to overtime for hours worked in excess of 40 hours per week. It will likely also change the way employers hire and classify workers, and will likely require employers to reconsider attempts to move employees from non-exempt to exempt status.
Under the Fair Labor Standards Act (FLSA), employees are entitled to overtime compensation unless they are properly classified as exempt from such requirements. Many employees are misclassified or not paid for all overtime hours worked in a workweek.
If you have questions about the Fair Labor Standards Act, its overtime and minimum wage obligations, or any other issue, please call one of our Utah employment lawyers at (801) 758-7604 or visit Stavros Law online at utahtriallawyers.net for more information.
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