The Minimum Salary Threshold Test for the white-collar overtime exemption is changing. The U.S.
Department of Labor (DOL) has finalized changes that will raise the minimum salary threshold to
the 40th percentile of weekly earnings for full-time salaried workers. The minimum salary threshold,
above which an employee can be designated as exempt from overtime requirements, is $913 a week
or $47,476 annually for a full-year worker. The effective date of the Final Rule is Dec. 1, 2016. Future
automatic updates to those thresholds have been proposed to occur every three years, beginning on
Jan. 1, 2020.
