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Doubling Down on Employee Salaries: The U.S. Department of Labor More Than Doubles the Mandatory Minimum Salary Requirement for Most Exempt Employees

Jennings Strouss

By: Chris M. Mason 

“Beginning December 1, 2016, the minimum salaries for most exempt jobs will more than double to $47,476 from the existing $23,660 required. On May 18, the U.S. Department of Labor (“DOL”) dealt its long-anticipated regulatory amendments for “white collar” overtime exemptions under the Fair Labor Standards Act (“FLSA”), which included increases to the mandatory base salary requirement.

The challenge for employers and employees alike will be the determination whether certain jobs will continue as exempt positions, or whether they will be converted to non-exempt positions entitled to overtime pay.  Some jobs may end entirely.  While other options remain, and a variety of jobs will remain unaffected, early estimates anticipate that approximately 5 million workers will be directly affected, for good or for bad, by the recent changes. ”

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