Proposed Increases to Federal Overtime Salary Thresholds Provide an Opportunity to Review FLSA Compliance

13 March 2019
View Debevoise Update
Key takeaways:
  • The U.S. Department of Labor has announced a proposed rule that would increase the annual minimum salary requirement for the white collar overtime exemption from $23,660 annually to $35,308 annually. The proposed rule also would increase the total annual compensation requirement for the highly compensated employee exemption from $100,000 to $147,414.
  • Employers should prepare to audit for compliance with FLSA exemptions this year and assess whether any positions in their workforce would be impacted by the increased salary requirements.
  • Investors and buyers should perform diligence as to whether target businesses have a workforce that would be impacted by the increased salary requirements and what the increased costs associated with compliance would be.