Under the new Final Rule, employers will be permitted to use nondiscretionary compensation (e.g. bonuses and commissions) to satisfy up to 10% of the White Collar Exemption salary level, which can be paid on an annual or more frequent basis.
Employers will also be permitted to make one “catch-up” payment within one pay period after the end of each 52-week period to bring the employee’s compensation up to the required salary level. This “catch-up” payment may equal up to 10% of the required salary level.
The new law does not automatically update the minimum required salary levels, but the Department of Labor (DOL) anticipates updating the salary levels every four years through the regular notice-and-comment rulemaking.