The comment period on the U.S. Department of Labor’s (DOL) proposed rule to raise the required minimum salary level for employees to qualify for overtime exemptions under the Fair Labor Standards Act (FLSA) is now open. The comment period began on September 8 and will remain open for 60 days, closing on November 7, 2023. After the comment period closes, the DOL typically reviews all comments received and conducts a comment analysis to decide whether to proceed with the rulemaking process; issue a new or modified proposal; or withdraw the proposed rule altogether.
For background, the proposed rule would increase the salary threshold for the executive, administrative, and professional (EAP) exemptions from $684 per week ($35,568 annually) to $1,059 per week ($55,068 annually) and for highly compensated employees (HCE) from $107,432 to $143,988. The proposed rule also provides for automatic updates to the salary level based on changes in the cost of living.
The Notice of Proposed Rulemaking (NPRM) proposes that all aspects of the proposed rule would become effective 60 days after publication of a Final Rule. However, the DOL is seeking comments on the proposed effective date and whether to apply different effective dates to different provisions of the proposed rule.
Next Steps
If you would like to submit public comments for consideration on the proposed rule, you may do so by using the link to the NPRM above and clicking on the green “Submit A Formal Comment” button in the top right-hand corner of the webpage.
Multistate employers should also be mindful of state laws which may require higher salary levels than those proposed under this federal rule. Currently, Alaska, California, Colorado, Maine, New York, and Washington have higher salary level requirements for certain exemptions.
Additional information on the proposed rule is available in this Special Alert from HR Works.
How HR Works Can Help
As a reminder, current HR Works’ Virtual HR Helpline subscribers have unlimited access to our Virtual HR Helpline for answers to questions about the proposed FLSA exempt salary increase, as well as other HR/employment law topics, and 24/7 access to HR Works’ attorney reviewed online compliance resource center (Comply) which offers human resources tools, forms, and resources; in addition to access to two free FLSA Assessments each year (with the availability of additional assessments that can be completed for an additional fee). The HR Helpline can be reached at hrhelp@hrworks-inc.com or by calling 888-668-1271.
HR Works Strategic Services clients may reach out to their designated HR Strategic Partner for additional guidance and assistance with FLSA Assessments.
Non-HR Works clients may contact us for HR solutions by calling toll-free at 1-877-219-9062 or visiting our website.
