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The USDOL releases new salary requirements to maintain exempt status

March 11, 2019

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On March 7, 2019, the United States Department of Labor released the long-awaited adjustment to the salary level that is the first hurdle to claiming an employee is exempt from being paid overtime. This movement toward a new salary level began in the Obama administration which had proposed a new salary level of $47,476 per year as the minimum salary level for exempt employees. That was stopped by a Federal judge in December of 2016 and then we changed presidential administrations. The Secretary of Labor under the Trump administration then had control of what was to happen. As I wrote in The decision on what salary level is appropriate to be considered exempt is delayed, Alexander Acosta agreed that the threshold salary level needed to be changed, but to a level more palatable to businesses. That decision has now been rendered.

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