DOL Proposed Minimum Salary Increase For Exempt Employees

DOL Proposed Minimum Salary Increase For Exempt Employees

The Federal Department of Labor just released its draft rules on the proposed new minimum annual salary for employees who are exempt from the overtime requirements of the Fair Labor Standards Act (FLSA). Under the proposed changes, the minimum annual salary for overtime exempt employees would increase from its current level of $23,660 to $35,308.

In addition, the proposed rule would:

  • Increase the total annual compensation requirement for “highly compensated employees” (HCE) from the currently-enforced level of $100,000 to $147,414 per year
  • Include a commitment to periodic review to update the salary threshold. An update would continue to require notice-and-comment rulemaking
  • Allow employers to use nondiscretionary bonuses and incentive payments (including commissions) that are paid annually or more frequently to satisfy up to 10% of the standard salary level


Next Steps

The DOL is allowing a 60 day public comment period on the proposed regulations.  After that ends, they will respond to comments and determine if any changes will be made before issuing a final rule. As of now, the DOL projects that the new regulations will take effect in January 2020.

Xenium will continue to monitor the regulations and will communicate the final rule once it is announced.  For additional details please see:


Brandon Laws

As Director of Marketing, Brandon Laws leads all marketing efforts for Xenium, providing oversight on all marketing campaigns, digital marketing strategy, events, sponsorships and public relations. Brandon brings a positive energy to every aspect of his role at Xenium—from internal initiatives around culture and wellness to industry thought leadership through the Xenium podcast and other social efforts. Active within the HR community, he currently volunteers on the board of the Portland Human Resource Management Association as the Director of Marketing & PR.

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