As proposed, the rule would:
- Increase the salary level threshold for FLSA exempt employees from $23,600 ($455 per week) to $35,308 ($679 per week),
- Allow nondiscretionary bonuses and incentive payments to count towards 10 percent of the threshold, and
- Increase the salary level threshold for highly compensated employees from $100,000 to $147,414 for the simplified duties test.
Legal challenges are expected to be filed immediately upon publication and could delay the effective date of the rule.
Outlook: The House will hold hearings on the final rule and it will likely be an issue in the 2020 presidential campaign. Employers should be prepared to implement the final rule 120 days after it is published.
