The Department of Labor issued a final rule that raises the minimum salary threshold for exempt employees. Under the final rule, the new minimum salary requirement for exempt employees is $35,568 ($684 per week). Previously the minimum salary threshold was $23,600 ($455 per week). This change goes into effect on January 1, 2020.
Employers should review all exempt employees to ensure that they meet this minimum salary requirement. If they do not, employers can either raise the employee’s salary to meet the new salary level or re-classify the employee as non-exempt.
This rule change will likely increase the focus on whether employers have properly classified workers. Therefore, it is a good time for employers to review all exempt employees to ensure proper classification. In addition to the minimum salary requirement, employees must be paid on a salary basis and perform certain exempt duties in order to be exempt under the Fair Labor Standards Act.
If you have questions regarding an employee’s classification, please call our office at 319-363-0101 or contact me via email at firstname.lastname@example.org and we can help ensure proper classification.