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Alert : DOL Proposes Rule to Raise Salary Threshold for FLSA Overtime Exemptions

We know many of you have been awaiting word on new salary thresholds since the Obama administration’s 2016 proposal was struck down by the courts. Here is the new proposal in a nutshell:

“White collar” exemption salary threshold is planned to increase by $11,648
  • To $679 weekly ($35,308 annually)
  • From $455 weekly ($23,660 annually)
  • Expected effective date January 2020
Some Background: In order to be eligible for the “white collar exemptions” from overtime, employees must meet three criteria: (1) the employee must perform certain specific duties, (2) the employee must be paid on a salary basis (the same amount weekly regardless of quality or quantity of work), and (3) the employee must be paid a minimum amount of salary… currently $455 per week.  This minimum salary threshold has not changed since 2004. The Trump administration’s proposed rule would change the minimum amount of salary necessary to meet the test from $455 weekly to $679 weekly. The new rule would also allow employers to pay up to 10% of the threshold amount with certain nondiscretionary bonuses or commissions. Additionally, the proposed rule would increase the Highly Compensated Employee exemption to $147,414 annually, up from $100,000. Click here for the proposed rule and the DOL’s press release, fact sheet, and FAQs. 
Next Steps: Before the rule can take effect, it will be published in the Federal Register, followed by a 60-day period when the DOL will accept comments on the rule. If the rule takes effect, an estimated 1.1 million employees who now meet these exemptions will become non-exempt unless their salaries rise to meet the new threshold. In anticipation, employers should assess the potential impact on their businesses, and start having conversations about planning changes to employee compensation. For assistance with FLSA compliance and other employment laws and regulations, contact Nicole Gardner at or Caleb Holloway at

Congratulations GS Lawyers!

It's not just award season in's also the season when professional recognitions are conferred on members of the legal profession. Congratulations to the following Gardner Skelton lawyers on receiving recognition from their peers in 2018.

Jared has been awarded AV Preeminent status by Martindale-Hubbell. He was also again recognized by SuperLawyers as a Top Rated Business Litigation Attorney.

Nicole was again named by SuperLawyers as one of the top employment lawyers in North Carolina, as well as Top 50 Women Lawyers in North Carolina and Top 100 Attorneys in North Carolina.  She was also again named as one of the Best Lawyers in America. In addition, she has been named to Business North Carolina's Legal Elite since 2010, including Legal Elite's Hall of Fame since 2015.

Tyler has been selected to participate in the 2019 Bar Leadership Institute, sponsored by the Mecklenburg County Bar and the Mecklenburg Bar Foundation. This five-month educational program is an opportunity for participating lawyers to develop professional and leadership skills within the Bar, the Foundation, the legal profession and the community. In addition, Tyler was selected as a 2019 SuperLawyers Rising Star (Business Litigation).
You're Invited!

Please join Gardner Skelton in supporting local musicians at Tosco Music Party , April 20, 2019, Knight Theater at Levine Avenue of the Arts!
Want to join us? Let us know by April 15th and we'll make sure there's a ticket for you at the will-call window! Email Robin at .
Gardner Skelton PLLC
505 East Boulevard, Charlotte, NC 28203
704.335.0350 phone / 704.390.7027 fax
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