The U.S. Department of Labor (DOL) has published proposed regulations to increase the minimum required salary for employees under the white-collar exemptions.

If the rules take effect as written, the required minimum salary to qualify for an overtime exemption would more than double in 2016.

To qualify for an executive, administrative or professional (EAP) exemption from overtime, employees must:

• Be paid on a salary basis
• Be paid at least a fixed minimum salary per week
• Perform job duties that qualify for the claimed exemption.

The proposed regulation would increase the minimum salary for the EAP exemptions from the current $455 per week (approximately $23,600 a year) to $970 per week (approximately $50,400 a year) in 2016, when final regulations would likely take effect.

As a practical matter all salaried personnel making less than $50,400 a year will be entitled to overtime pay in 2016 under federal law.

If you have any questions about these regulations, please contact Granite Payroll.

Granite Online is a powerful web-based payroll solution designed to streamline payroll operations while enhancing flexibility, security, and control. This dynamic product enables you to maintain control of your payroll data while utilizing our payroll expertise. With 24/7 convenience, Granite Online allows instantaneous e-transfers, printing of live checks and payroll reports, and tracking of human resource data. This easy-to-use payroll product lets you know what’s happening in real-time, so you can minimize costly productivity issues. Whether your company is large or small, local or nationwide, our payroll specialists are at your service.