The U.S. Department of Labor’s methodology and minimum salary threshold set forth in its proposed revisions to the Fair Labor Standards Act’s “white collar” exemptions are “unprecedented in the FLSA’s 77-year history,” explained Littler Principal Tammy McCutchen during a Subcommittee on Workforce Protections hearing. The DOL’s Wage and Hour Division released its proposed rule last month. Under the terms of the proposal, the agency would set the minimum salary threshold used to separate exempt from non-exempt employees at the 40th percentile of the salary earned by all non-hourly paid employees, and create a mechanism for annual automatic increases. By the year 2016, when a final rule is expected to take effect, this calculation would result in a minimum salary threshold of $970 per week, or $50,440 per year.
Home > Federal Law Articles > FLSA > Overtime Exemptions > Littler’s Tammy McCutchen Testifies that the DOL’s Approach in Proposed Overtime Rule is “Unprecedented”