New "White Collar" Final Rule Issued; Takes Effect December 1, 2016
The final rule and its increased salary requirements will take effect on December 1, 2016. The new regulations will:
- Increase by slightly more than double the minimum salary level for exempt “white collar” employees from $455/week ($23,660/year) to $913/week ($47,476/year);
- Raise the highly compensated employee (“HCE”) threshold from $100,000 to $134,004; and
- Automatically update every three years (1) the minimum salary level to the 40th percentile of full-time salaried workers in the lowest income region of the country; and (2) the HCE threshold to the 90th percentile of full-time salaried workers nationally.
As a practical matter, these changes to the “white collar” regulations mean higher wages to employees, higher wage costs for employers, and likely increased exposure and risk to employers in wage and hour cases.
A "pre-publication" version of the final rule can be found here.