By: Isabel A. CrosbyBen Gipson and Daniel Turinsky

It’s like déjà vu all over again. Many employers will recall putting plans in place, and maybe even handing out raises, in 2016 to comply with changes to the Fair Labor Standards Act’s minimum salary thresholds, only to learn that a Texas federal judge had blocked the rule from taking effect on the eve of implementation.

After years of waiting and speculation, the US Department of Labor (DOL) issued a new proposed rule last week. If finalized, the new rule’s most significant impact will be to raise the minimum salary an employee must be paid to be exempt from overtime under the FLSA from $23,660 per year ($455 per week) to $35,308 per year ($679 per week). Although this change will have little to no effect on employers in states such as New York and California where the minimum salary threshold already far exceeds the federal standard ($58,500 for large employers in New York City and $49,920 for large employers in California), it could have a significant impact on employers located throughout the rest of the country.

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