The U.S. Department of Labor recently updated the regulations defining and delimiting the exemptions for executive, administrative, and professional employees.

Key Provisions of the Final Rule 

The final rule updates the salary and compensation levels needed for workers to be exempt in the final rule:

  1. raising the “standard salary level” from the currently enforced level of $455 to $$684 per week (equivalent to $35,568 per year for a full-year worker);
  2. raising the total annual compensation level for “highly compensated employees (HCEs)” from the currently enforced level of $100,000 to $107,432 per year;
  3. allowing employers to use non-discretionary bonuses and incentive payments (including commissions) that are paid at least annually to satisfy up to 10 percent of the standard salary level, in recognition of evolving pay practices; and
  4. revising the special salary levels for workers in U.S. territories and in the motion picture industry.

Click here to read the full fact sheet from the U.S. Department of Labor.