HR Tip of the Week- Changes to Exempt Classification Could Be Coming

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Have You Heard? Changes to Exempt Classification

You may have recently heard all the talk about the Department of Labor changes to Exempt Classifications and proposed changes to the salary threshold for exempt employees. It is closer to becoming a reality. The proposed changes on the horizon are:

  • Seeking to increase the white collar salary minimum from $23,660 to $50,440 annually.
  • Increase the highly compensated salary threshold from $100,000 to $122,148 annually.
  • Change or modify the white collar employee exemptions to make it more difficult for employees to be classified under “Exempt” Status.

What does that mean for employers? You may have to start assessing your workforce to determine who might lose exempt status and be reclassified to nonexempt – thus increasing exposure to overtime labor costs.

More will become available in the coming months. The anticipated changes most likely will take effect in 2016. Until then, the Department of Labor is inviting public comment on what changes, if any, should be made to a “duties” test in determining exempt status eligibility.

We at Employers Resource will keep you informed as new and developing information is forthcoming.

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