By Mark R. Filipp

Executive, administrative and professional employees (“EAP” employees) are exempt from the Federal overtime pay requirements, provided the employees are paid on a “salary basis.” To be paid on a “salary basis,” current regulations require EAP employees to be paid a minimum salary level of $455 per week ($23,660 annualized) to maintain the EAP exemption. Although the Obama administration was ultimately unsuccessful in its attempt to raise the minimum salary level to $921 per week ($47,892 annualized), recently the DOL announced that effective January 1, 2020, the minimum salary level for EAP employees is being raised from $455 a week ($23,660 annualized) to $684 a week ($35,568 annualized).

For further information regarding these matters, please contact Mr. Filipp at 248.619.2580 or via email.