DOL May Increase White Collar Overtime Exemption Salary Threshold

In September of this year, the Department of Labor (the “DOL”) and employee and employer advocates from the Rocky Mountain region gathered to discuss how to increase the minimum salary threshold for the White Collar Overtime Exemptions. Currently, the threshold is at $23,660. The participants generally agreed that the new threshold should be between $30,000 and $40,000 including bonus and commission dollars. Suggestions also included having varying regional salary thresholds to account for different costs of living, using salary data to set the thresholds, and increasing the threshold over a period of time.

How might this affect me? Well don’t get too far ahead of yourself. The DOL will still have to determine how to revise the Rule. However, it seems likely that the DOL will have some sort of increase in the threshold over time. An increase in the salary threshold may make employer costs go up due to overtime pay and logistical costs for tracking additional non-exempt managers. For employees, this may mean more work/life balance due to being eligible for overtime pay.

To discuss wage and salary issues and who may be exempt from overtime, contact one of our employment attorneys in our Sioux City, Sioux Falls, or Omaha offices.