Member Seminar Series: Notice of Proposed Rule Making
Date and Time
Tuesday Mar 1, 2016
3:00 PM - 4:30 PM CST
Tuesday, March 1, 2016
3:00 PM - 4:30 PM
Location
JUMP Trading Simulation & Education Center
Auditorium B
1306 N. Berkeley Ave.
Peoria, IL 61603
Fees/Admission
Included as a Member Benefit
Contact Information
Kelly Donnelly
Send Email
Member Seminar Series: Notice of Prop...
Description
The Notice of Proposed Rulemaking (NPRM) focuses primarily on updating the salary and compensation levels needed for white collar workers to be exempt. Specifically, the Department proposes to:
- set the standard salary level at the 40th percentile of weekly earnings for full-time salaried workers ($921 per week, or $47,892 annually);
- increase the total annual compensation requirement needed to exempt highly compensated employees (HCEs) to the annualized value of the 90th percentile of weekly earnings of full-time salaried workers ($122,148 annually); and
- establish a mechanism for automatically updating the salary and compensation levels going forward to ensure that they will continue to provide a useful and effective test for exemption.
The Department is also proposing to automatically update the standard salary and HCE total annual compensation requirements to ensure that they remain meaningful tests for distinguishing between bona fide executive, administrative, and professional workers who are not entitled to overtime and overtime-protected white collar workers. Experience has shown that the salary level test is an effective measure of exempt status only if it is up to date.
In addition, the Department discusses the current duties test and solicits suggestions for additional occupation examples and requests comments on the current requirements. Similarly, the Department seeks comment on the possibility of including nondiscretionary bonuses to satisfy a portion of the standard salary requirement. The Department is not proposing specific regulatory changes on either of these issues.
Registration will close Monday, February 29.