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 the 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
5 thoughts on “It’s Official: $684 Per Week Will Be the New Minimum Salary for Exempt Employees”
Sorry if I missed it but when will this take effect?
Basing that salary on a 40 hour work week, that means the following—$17.10/hour, )’$25.65/ overtime pay,$684/week, $2964/month $35,568/year — Not a particularly high income if you live in a high cost area, but helpful in a lower cost area. The article does state that this is a starting salary for an exempt employee who is expected to work 40 hours of time. Now if the job requires more hours than the salary can be negotiated to reflect this, using the numbers listed above.
From what I read other places I will take place on 1/1/2020.
But do the other criteria still apply? I thought you had to have supervisory responsibilities too. $35K is barely even enough to live on in St. Louis, let alone anywhere with a higher COL. So if you moved there and got a $35-45K job they could make you work 60 hours a week for no extra money. That would stink. Most jobs at that level are not worth it. It needed to be higher. Screwed again!!
Often misunderstood caveat is that the hours you work can’t make you dip below minimum.
The duties test stand, but supervisory is not required, independent professional stands.
Comments are closed.