At long last, the federal Department of Labor has issued its widely anticipated second proposal to raise the minimum salary threshold for employees to qualify for various white collar exemptions under the Fair Labor Standards Act.  Following a failed attempt by the Obama-era DOL to set a salary threshold of $47,476, the DOL is setting its sights lower this time around with a proposed $35,308 salary threshold.

Currently, the salary threshold for employees to qualify for a white collar exemption is set at $23,660 annually under federal law.  The DOL anticipates that raising the salary threshold to approximately $35k will make more than a million employees non-exempt, and therefore eligible for overtime compensation.  This is considerably less than the 4 million people that the Obama-era rule would have rendered non-exempt from the overtime rules.

Although the DOL’s proposed rule affects Connecticut and Massachusetts employers, it has no effect on New York employers, which are already subject to a higher salary threshold than the proposed federal rule and varies depending upon the employer’s location in the state.   In New York City, the salary threshold for applying the white-collar exemption is $1,125.00 per week.  In Nassau, Suffolk and Westchester counties, the salary threshold is $975 per week, and in the remainder of the state it is $885 per week.  See Wage/Hour Alert: New York State Increases Overtime Salary Threshold for White Collar Exemptions and New Minimum Wage Takes Effect (1/3/2017)

The DOL’s prior attempt to raise the salary threshold to $47,476 was blocked by a federal court judge only days before it was set to take effect back in 2016.  See Wage/Hour Alert: Court Issues Nationwide Block of Overtime Exemption Regulations (11/28/2016).  Since then, employers and employees alike have anxiously awaited the DOL’s second bite at the apple.

Importantly, the DOL’s proposed salary threshold is just that – a proposal.  The proposed rule will now be subject to a 60-day public comment period, and as we saw with the prior proposal, there is no guarantee that this proposal will become law.  That being said, employers should start planning now for what may eventually be the new salary threshold. This is a developing story, so stay tuned for updates.

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Photo of Salvatore G. Gangemi Salvatore G. Gangemi

Salvatore G. Gangemi, a partner at Murtha Cullina, is a veteran labor and employment lawyer with nearly 30 years of litigation and counseling experience.

Employers from across the industry spectrum, including established companies in the senior living and health care fields; manufacturing, construction…

Salvatore G. Gangemi, a partner at Murtha Cullina, is a veteran labor and employment lawyer with nearly 30 years of litigation and counseling experience.

Employers from across the industry spectrum, including established companies in the senior living and health care fields; manufacturing, construction, retail and service firms; and emerging companies, seek Sal’s legal counsel to navigate today’s complex local, state and federal employment laws. His practice includes resolving disputes; advocating in courts and before administrative agencies; counseling on employment-related issues arising from acquisitions; and guiding clients in both long-range strategy and day-to-day administration of their workplaces and employees.

At the federal level, Sal brings extensive experience in OSHA investigations, audits and proceedings; the Fair Labor Standards Act (FLSA); Title VII discrimination matters; the Age Discrimination in Employment Act (ADEA); the Americans with Disabilities Act (ADA); and the Family Medical Leave Act (FMLA). He is also well-versed in state and local employment regulations.

Sal regularly represents clients in matters before the Equal Employment Opportunity Commission (EEOC), the U.S. Department of Labor and other federal agencies. On the state level, he appears before the New York State Division of Human Rights; the New York City Commission on Human Rights; the Connecticut Commission on Human Rights and Opportunities; the Connecticut Department of Labor; and the New York State Department of Labor. He has litigated cases involving misappropriation of trade secrets, restrictive covenants, breach of employment contract, fiduciary duty and other work-related common law claims.

Clients rely on Sal’s advice on routine human resources matters that arise in their businesses, including requests for reasonable accommodation for those with disabilities, family and medical leave issues, hiring and termination, and wage and hour concerns. Known for his proactive approach to identifying issues before they escalate, he conducts compliance training on sexual harassment prevention and other topics, performs worker classification practice and policy audits, and drafts employment policies and agreements. Sal shares his knowledge of the ever-evolving employment law landscape by speaking at events, conducting continuing legal education seminars and writing articles for a variety of publications.