Today, the U.S. Department of Labor released its final rule, updating earnings requirements for exempt treatment under the Executive, Administrative, and Professional (or "EAP") exemptions of the Fair Labor Standards Act ("FLSA").Under the final rule:
- The salary level requirement under the EAP exemptions will rise from $455 a week (or $23,660 annually), to $684 (or $35,568 annually).
- The total annual compensation for certain "highly compensated employees" also goes up, from $100,000 to $107,432 annually.
- Employers will be allowed to use certain non-discretionary bonuses, commissions, and incentive payments that are paid at least annually to satisfy up to 10 percent of the salary level requirement.
- Certain special salary levels for workers in U.S. territories and in the motion picture industry are also being updated.
