Sharing my colleague Glenn Grindlinger’s recent alert on the DOL’s proposal to increase salary thresholds for determining when an employee is exempt from overtime. Employers take note, this could mean significantly increased overtime costs and mandates that employers carefully scrutinize their compensation policies. Here is the link:

U.S. Department of Labor Proposes Increases to Salary Thresholds for Overtime Exemptions (

The Takeaway

Employers must look at the job duties performed by employees currently deemed exempt. If an employer determines someone is on the borderline, it is safer, much safer, to convert that employee to hourly and not have to look over one’s shoulder for an audit or lawsuit to (finally) look at whether someone (or a class) meets the exempt tests. I have conducted dozens of internal audits for clients where I reach conclusions on whether certain classifications are/are not exempt. It provides a real base line to guide an employer.

Also, this proposed number is a starting point for negotiations. I expect the final number to be somewhere in the $40-45,000 range.