The U.S. Department of Labor recently issued a proposed final rule that would increase the minimum salary required for most ‘white collar’ employees to remain exempt from the FLSA’s overtime requirements. DOL anticipates that the new rule will make one million more U.S. workers eligible for overtime, many of whom work in the retail sector. The DOL proposed rule will increase the minimum salary to $35,308 annually, or $679 per week, from the current $455 per week level.
In addition to raising the minimum salary for most exempt employees, the proposed rule makes several other changes that will be important for many retailers. One of the specific topics on which DOL seeks public comment is its proposal to increase the minimum salary again, every four years.
On Friday, March 22, DOL announced that it will accept public comments on the rule until May 21. The proposed rule and request for comments can be viewed in full here. It is likely that the DOL’s proposed rule will be finalized sometime yet this year.