It’s Official: $684 Per Week Will Be the New Minimum Salary for Exempt Employees

by Evil HR Lady on September 24, 2019

The US Department of Labor issued a final ruling today on the new salary threshold for salary exemption: $684 per week (equivalent to $35,568 per year for a full-year worker). Anyone who earns less than this becomes eligible for overtime pay, regardless of actual duties.

This increase in the minimum salary for exemption has been in discussions since the Obama administration proposed an increase to $47,476 in 2016. That was struck down by a court ruling, and the Trump administration chose not to appeal. Of course, it is possible that this will be struck down as well, but the reason for the ruling earlier was, as  Employment lawyer Jon Hyman explained the “new, higher salary level improperly swallows the rest of the exemption test and makes salary alone dispositive on the issue of exemption qualification.”

This increase is unlikely to face the same objections, as it’s substantially lower and the formula used was theĀ same one used to calculate the 2004 threshold–the last time it was changed.

To keep reading, click here: It’s Official: $684 Per Week Will Be the New Minimum Salary for Exempt Employees

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