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In Our Judgment

The official Frantz, McConnell, and Seymour, LLP blog.

Take Two on Overtime Rule/Changes

Take Two on Overtime Rule/Changes
We are now approaching the 3rd anniversary of the United States Department of Labor’s (DOL) efforts to raise the minimum salary of those workers who can be deemed “exempt” from federal law overtime requirements.  Under current federal law, in order to be exempt from overtime requirements, an employee (1) has to perform executive, administrative, or professional duties (the “duties test”); (2) has to be paid a set weekly salary that does not change based upon the number of hours worked (the “salary level test”); and, (3) has to be paid at least $455.00 per week ($23,660.00 annually).  This last criteria is referred to as the “minimum salary test.”  The minimum salary test is the subject of the ongoing effort to change current law.  Despite the protracted debate, most everyone agrees an annual salary of $23,660.00 is too low a threshold and that it needs to be raised. 
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