Exciting News!

As of April 1, 2023, Nexsen Pruet will merge with
Maynard Cooper & Gale. 

Together we are 

Maynard Nexsen Logo

We look forward to serving our clients from 23 offices and with 550 attorneys coast-to-coast.

Important News for Employers: Salary Increase for Overtime Exemption


On Tuesday of this week, the U.S. Department of Labor announced the final version of its overtime exemption rule, raising the annual salary threshold workers need to meet to qualify for the “white collar” exemptions under the Fair Labor Standards Act to $35,568, or $684 per week. The final rule updates the FLSA’s overtime exemptions for executive, administrative and professional workers and replaces a rule finalized by the department in 2016 that is currently enjoined.

This increases the threshold by about $12,000 from the current $23,660 annual salary that was last updated in 2004. In its proposed rule, the DOL had asked for public comments on a plan to increase the threshold every four years going forward. However,  the agency did not adopt the plan in its final rule, noting that doing so would deprive it of “flexibility to adapt to unanticipated circumstances.”

Additionally, the new rule raises the “highly compensated” worker threshold from $100,000 to $107,432. The highly compensated employee exemption covers highly paid workers who perform some managerial duties, though employees designated as highly compensated have less-stringent requirements for exemption from overtime.

The new rule will take effect Jan. 1, 2020.

If you need more information on the FLSA's updated overtime exemptions or any other matter, please contact Nexsen Pruet's Employment & Labor Law team.

Our Insights are published as a service to clients and friends. They are intended to be informational and do not constitute legal advice regarding any specific situation.

About Nexsen Pruet

Nexsen Pruet serves clients from nine offices across the Southeast. With more than 200 lawyers and professionals, the firm provides regional, full-service capabilities with international strengths.

Media Contact

Tina Emerson

Chief Marketing Officer

Direct: 803.540.2105

Jump to Page

Tracking Technologies and Advertising. You can set your browser to refuse all or some browser cookies or to alert you when cookies are being sent. If you disable or refuse cookies, we may not be able to provide you with the full features, functionality, or performance of our Sites.