FLSA Exemption Salary Threshold Revision Released

The Department of Labor (DOL) announced a proposed threshold update to the Fair Labor Standards Act (FLSA) executive, administrative, and professional regulations on Wednesday, August 30, 2023.

DOL is proposing to raise the standard salary level for exempt employees to $1,059 per week ($55,068 per year) and automatically update earnings thresholds every three years so they keep pace with changes in worker salaries. The automatic update would ensure that employers could adapt more easily because they would know when salary updates would happen and how they would be calculated.

The history of proposed salary threshold changes include:

• 2023: proposed rate increase to $1,059 per week ($55,068)
• 2020: current rate of $684 per week ($35,568) set
• 2016: proposed increase to $913 per week ($47,476) blocked by court order
• Prior to 2016: rate was $455 per week ($23,660)

The proposed rules are yet to be published in the Federal Register. Once they are published, links to the proposal and instructions on how to comment will be available on the DOL Regulations webpage. Employers are encouraged to comment on the proposed rule.

HR Services will provide additional details as information is released.