On Aug. 30, 2023, the U.S. Department of Labor (DOL) announced a proposed rule to amend current requirements employees in white collar occupations must satisfy to qualify for an overtime exemption under the Fair Labor Standards Act (FLSA).
The FLSA white collar exemptions apply to individuals in executive, administrative, professional, and some outside sales and computer- related occupations. Some highly compensated employees may also qualify for the FLSA white collar overtime exemption.
To qualify for this exemption, white collar employees must satisfy the standard salary level test, among other criteria. This salary level is a wage threshold that white collar employees must receive to qualify for the exemption.
The DOL is proposing to increase the standard salary level from:
- $684 to $1,059 per week ($55,068 per year); and
- $107,432 to $143,988 per year for highly compensated employees.
