The Department of Labor’s (“DOL”) proposed new rules regarding the administrative, executive and professional exemptions (“EAP Exemptions”) under the Fair Labor Standards Act have created quite a stir, mainly because the DOL has proposed to raise the salary threshold for the EAP Exemptions from $23,660 to $50,440. In addition, the DOL has also proposed to raise the salary threshold for the highly-compensated employee exemption from $100,000 to $122,148. According to the DOL, these increases to the salary thresholds might cause as much as 4.7 million workers in the country to lose their exempt status.
That’s right. 4.7 million people. Losing their exempt status. Can you say “oh no…”?
Just recently, news has leaked from a “Democratic staffer” that the salary threshold for the EAP Exemptions might be raised to $47,000 per year (instead of $50,440). While this figure it not as high as originally proposed, it is still going to be double the current salary threshold amount. So yeah, you can still say “oh no…”
Otherwise, it sounds like the DOL is putting its finishing touches on the new FLSA rules and could be issuing the rules shortly.