Salary Threshold Increase for Exempt Employees
The minimum federal salary threshold for white-collar employees may soon increase from $23,660 to $35,308. The U.S. Department of Labor recently released a proposed rule increasing the long-standing amount, as one of the requirements for “exempt” employees under the Fair Labor Standards Act. Consequently, nonprofit employers with modestly or low-paid executive directors and other dedicated leaders may need to revisit their compensation structures to ensure that key leaders remain as exempt employees, for purposes of overtime pay and related legal compliance. In case this news sounds familiar, it is. The DOL previously tried to increase the salary threshold much more drastically, and this second attempt might just stick.