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DOL Aims to Raise Salary Level for Highly Compensated Exemption

March 13, 2019 / Lisa Nagele-Piazza

In addition to increasing the salary threshold for white-collar exemptions, the Department of Labor's (DOL's) newly proposed federal overtime rule would raise the salary cutoff for highly compensated employees to $147,414. Here's what employers should know about the potential change. "It's a big jump," said Alexander Passantino, an attorney with Seyfarth Shaw in Washington, D.C. The proposed level is nearly $50,000 a year higher than the current $100,000 threshold. Workers who earn at least this much may qualify for exempt status if they meet a reduced duties test. Workers who don't earn the minimum salary may need to be given raises or reclassified to nonexempt status and paid overtime premiums. It's not clear, however, how many workers would need adjustments because some may qualify for another exemption, said Meredith Dante, an attorney with Ballard Spahr in Philadelphia.