DOL Announces New Salary Threshold for White Collar Exemptions

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On Sept. 24 the Department of Labor announced that effective Jan. 1, 2020, the salary threshold for an employee to be exempt from overtime under the administrative, executive, professional, and computer exemptions will increase from $455 per week to $684 per week (or $35,568 per year).

For employers, this new threshold means that employees who are currently exempt and earn a salary of less than $684 per week will, in most cases, become non-exempt. The change is expected to impact an estimated 1.2 million workers.

Other less impactful changes the DOL announced:

Raising the total annual compensation requirement for “highly

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