President Obama has announced that a soon to be released proposed rule from the U.S. Department of Labor will include an increase in the minimum salary necessary for an employee to qualify as an exempt employee. Under the proposal announced by @POTUS today, by 2016, employers will have to pay exempt employees a minimum or $921 per week ($47,892 annually) and the salary will be linked the 40th percentile of income thereby increasing automatically over time. The change is expected to increase the number of employees eligible for overtime by 5 million workers.
The DOL’s proposed rule, to be released as early as this week, will likely include additional proposed revisions making fewer employees qualify as exempt and requiring overtime for more employees. Stay tuned for more updates.
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