The U.S. Department of Labor (“DOL”) has proposed significant changes to the overtime pay regulations of the Fair Labor Standards Act (“FLSA”). The proposal would increase the salary threshold for the standard white collar exemptions to the 40th percentile of weekly wages for all full-time salaried employees (more than $50,000 per year) and increase the salary threshold for highly compensated employees to the annualized value of the 90th percentile of weekly wages of all full-time salaried employees (more than $122,000 per year). As employers begin evaluating the impact of these proposed changes on their workforce, many are reexamining how they pay employees and whether their compensation plans should change with the new proposal.

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