U.S. Department of Labor issued a proposed rule to drastically decrease the number of employees who qualify for exempt status

Wednesday, July 01, 2015 12:52 PM | Diane Lasorda (Administrator)

Yesterday the U.S. Department of Labor issued a proposed rule to drastically decrease the number of employees who qualify for exempt status (i.e. exempt from overtime) under the Fair Labor Standards Act.

Under current rules, an employee is generally exempt from overtime if he/she earns at least $455 a week as a salary and also meets the duties of the executive, administrative, professional, or some other exemption.  Note: outside sales positions are a different story.

In the DOL's proposed rule, to qualify for the exemption, an employee must earn a salary of  $970/week ($50,440 a year), significantly higher than the current standard.

In the staffing industry, this will primarily impact your office staff, not your temporary employees.  Here is an article by Jackson Lewis on the subject.   

http://www.jacksonlewis.com/resources.php?NewsID=5195


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