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U.S. Department of Labor (DOL) Proposes Increase to Minimum Salary for Exempt Employees
On Aug. 30, 2023, the United States Department of Labor (DOL) released its highly anticipated proposed overtime rule. This rule, if finalized, would increase the minimum salary amount required to be paid to executive, administrative and professional (EAP) employees and the required annual compensation to be paid to highly compensated employees (HCEs) in order for these employees to be considered exempt from the Fair Labor Standards Act (FLSA) overtime pay requirements. The DOL is also proposing automatic updates to these amounts every three years.
The proposed rule does not include any changes to the standard duties test used to distinguish between FLSA-exempt and non-exempt employees. The DOL estimates that 3.6 million workers exempt from FLSA overtime under the current regulations would become newly entitled to overtime protection under the FLSA.
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