DOL Proposes Changes To Overtime Exemption For Salaried Workers

On May 5, 2015, the U.S. Department of Labor submitted a proposed rule for review by the Office of Management and Budget (OMB) to modify the standards of the application of overtime exemptions for professional and executive personnel who are paid on a salary basis. Although the details of the rule are not yet available, it is expected that the rule change will raise the minimum salary level required for an application of the exemptions and tighten the standards for determining whether an employee is a “professional” or an “executive.”

Currently, the minimum salary necessary to qualify for exemptions is $455 per week. In March of last year, President Obama stated that he wanted the standards to be updated an ordered the Department of Labor to begin revising the rules.

Although there are many speculations on the content of the proposed rule, many observers expect the minimum salary level for qualification for the exemptions will likely double. The proposed rule is expected to be released by OMB in a matter of weeks.

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