The last time that the overtime standards in the Fair Labor Standards Act (FLSA) were adjusted was in 2004, however in 2014 President Obama issued a memorandum ordering the Department of Labor (DOL) to modernize these standards. The DOL issued a proposal in the summer of 2014 and final decision is expected in the coming months.
According to their newly-proposed standard, the standard exemption salary would be set at the 40th percentile of weekly earnings for full-time salaried workers. The DOL projects, using the fixed percentile of wages or the Consumer Price Index for the first quarter of 2016, the minimum annual salary for an exempt full-time employee would be $50,440 (over twice the current $23,660 per year).
The proposed rule also effects highly compensated employees:
The proposed rule would increase the total annual compensation requirement needed to exempt highly compensated employees (HCEs) to the annualized value of the 90th percentile of weekly earnings for full-time salaried workers (currently $122,148 annually). This figure would be adjusted yearly.