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The Department issued a Notice of Proposed Rulemaking (NPRM) to determine the appropriate salary level for exemption of executive, administrative and professional employees.  The Department also proposed to increase the highly compensated employees (HCE) total compensation level, allow the inclusion of up to 10 percent of the standard salary level to include nondiscretionary bonus and incentive payments as long as paid at least annually, and special salary levels for the U.S. territories and the motion picture industry.  In developing the final rule, the Department will be informed by the comments received in response to its NPRM.

Statement of Need:

WHD is reviewing the regulations at 29 CFR 541, which implement the exemption of bona fide executive, administrative, and professional employees from the Fair Labor Standards Act’s minimum wage and overtime requirements. The Department’s NPRM proposed an updated salary level for exemption and sought the public’s view on the salary level and related issues.

Summary of the Legal Basis:

These regulations are authorized by section 13(a)(1) of the Fair Labor Standards Act, 29 U.S.C. 213(a)(1).

Alternatives:

Alternatives will be developed in considering any proposed revisions to the current regulations. The public will be invited to provide comments on any proposed revisions and possible alternatives.

Anticipated Costs and Benefits:

The Department will prepare estimates of the anticipated costs and benefits associated with the final rule.

Risks:

This action does not affect public health, safety, or the environment.