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Using data from 2022, the DOL reports that using this metric will increase the salary threshold to $1,059 per week ($55,068 annualized) from the current $684 per week ($35,568 annualized). The DOL’s proposed rule, “Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees,” would increase the standard salary level to the 35th percentile of weekly earnings of full-time salaried workers in the lowest-wage Census Region (currently the South).

The duties-test: The employee’s job duties must primarily involve executive, administrative or professional duties as defined by the regulations.The salary-level test: The amount of salary paid must meet a minimum specified amount (currently $684 per week, or $36,568 per year) and.The salary-basis test: The employee must be paid a predetermined and fixed salary that is not subject to reduction because of variations in the quality or quantity of work performed.Most notably, the highly anticipated proposal seeks to raise the salary threshold under which employees are eligible for overtime pay under federal labor law to $1,059 per week ($55,068 annualized).īy way of background, to qualify for the “white collar” exemptions, each of the following tests must be met: 30, 2023, the WHD of the DOL released a NPRM that proposes to revise the “white collar” overtime exemption regulations applicable to executive, administrative, and professional employees. Employers should begin review of their workforce strategies and assess the financial and practical impact of the NPRM if implemented as proposed.The final rule may contain different salary thresholds, as the amounts are based upon wage data that may change prior the promulgation of the rule.The proposed rule would increase the total annual compensation threshold for highly compensated employees to approximately $143,988 per year.Department of Labor (DOL) released a Notice of Proposed Rulemaking (NPRM) that would increase the salary threshold under which employees are eligible for overtime pay under federal labor law to $55,068. The Wage and Hour Division (WHD) of the U.S.

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