On May 18, 2016 we got the long-awaited news from the Department of Labor that the Federal salary basis amount for exempt workers has increased to $47,476 effective December 1, 2016. Per the DOL:
Specifically, the Final Rule:
- Sets the standard salary level at the 40th percentile of earnings of full-time salaried workers in the lowest-wage Census Region, currently the South ($913 per week; $47,476 annually for a full-year worker);
- Sets the total annual compensation requirement for highly compensated employees (HCE) subject to a minimal duties test to the annual equivalent of the 90th percentile of full-time salaried workers nationally ($134,004); and
- Establishes a mechanism for automatically updating the salary and compensation levels every three years to maintain the levels at the above percentiles and to ensure that they continue to provide useful and effective tests for exemption.
You can find the full text here. TLDLAW is ready to assist you with compliance. Ask us about the new TLDLAW Plus Plan which is a great way to ensure you have access to employment law counsel at a fixed rate!