USDOL Finalizes OT Rule: FLSA Minimum Salary Threshold at About $35K

The U.S. Department of Labor (USDOL) has issued a final rule raising the minimum salary threshold required to qualify for the Fair Labor Standards Act (FLSA) white collar exemption from overtime pay to $35,568 (or $684 per week). The update increases the previously enforced minimum salary for executive, administrative and professional (EAP) workers by about $12,000. It also replaces the rule finalized in 2016 during the Obama administration but enjoined by a federal court judge in 2017.

The rule also raises the highly compensated worker threshold from $100,000 to $107,432. The rule does not include a mechanism for automatic salary threshold increases as did the enjoined proposal.

The new rule takes effect January 1, 2020.

For more information, see the fact sheet, or the Federal Register notice.