Proposed DOL Amendments

All members should be cognizant of Proposed Department of Labor (DOL) Amendments as they relate to compensation for exempt employees.  Currently, the minimum salary requirements to meet the definition of exempt employees for executive, administrative and professional (EAP) is (and has been since 2004) $23,660.  On July 6, 2015, the DOL proposed increasing that amount to $50,440.  While the proposed increase has NOT been approved as of the writing of this article, it is anticipated that it will go into effect sometime in 2016.  This dollar threshold is scheduled to be indexed each year.  The impact is that if you have any EAP making less than the threshold (the anticipated $50,440) they must be time and a half for any overtime.  Please continue to monitor this development and consult with your legal counsel for specific advice.

CPAFMA will be hosting a MAPCast on January 21, 2016 with a representative of the AICPA and an attorney to discuss the proposed amendments and what the changes would mean to CPA firms.