On May 18, 2016, the U.S. Department of Labor (DOL) announced the publication of a final rule amending the “white collar” exemptions from the minimum wage and overtime pay requirements of the Fair Labor Standards Act (FLSA). The final rule significantly increases the minimum salary threshold currently required to satisfy the FLSA’s white collar exemptions and provides for automatic increases in the threshold amount in the future. In addition, the final rule amends the salary-basis test to allow employers to use bonuses and commissions to satisfy up to 10 percent of the new salary threshold. The rule, which goes into effect on December 1, 2016, also raises the salary threshold for the highly compensated employee exemption.
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