Proposed changes to the Fair Labor Standards Act (FLSA) regulations were released on March 7, 2019. The proposed rule raises the salary threshold for exempt employees from $455 to $679 per week (equivalent to $35,308 per year).
There was speculation the rule would include changes to the duties tests and provide automatic adjustments to the salary threshold, but neither of these provisions were addressed. However, the rule makes a commitment for periodic review to update the salary threshold, which, according to the Department of Labor (DOL), would require following the notice-and-comment process.
The release of the proposed rules is only the first step in the process. The public will have 60 days from the date the rules are published in the Federal Register to submit comments to the DOL. These comments will be considered by the DOL when developing final regulations. A projected date for final implementation is not available.
Employers are not required or advised to take any actions at this time. HR Services will review the proposed regulations and provide additional guidance in the future to help members prepare for implementation.
More information about the proposed rule is available at the DOL website. The DOL encourages any interested members of the public to submit comments about the proposed rule electronically in the rulemaking docket RIN 1235-AA20.