Salary thresholds, highly compensated employees, and primary duties

(a)

Salary thresholds for executive, administrative, and professional employees

Section 13 of the Fair Labor Standards Act of 1938 (29 U.S.C. 213) is amended— (1)in subsection (a)(1), by inserting before ; or the following: , subject to the requirement that any employee whom the Secretary determines is required to be paid on a salary (or equivalent fee basis) in order to be exempt under this subsection shall, in order to be so exempt, receive compensation at a rate of not less than the salary rate (or equivalent fee basis) determined under subsection (k); and (2)by adding at the end the following:

(k)

Salary rate (or equivalent fee basis)

(1)

In general

The salary rate (or equivalent fee basis) determined under this subsection for purposes of subsection (a)(1) shall be— (A)beginning 1 year after the first day of the first month that begins after the date of enactment of the Restoring Overtime Pay for Working Americans Act, $665 per week; (B)beginning 2 years after such first day, $865 per week; (C)beginning 3 years after such first day, $1,090 per week; and (D)beginning on the date that is 4 years after such first day, and on such first day in each succeeding year, an adjusted amount that is— (i)not less than the amount in effect under this paragraph on the day before the date of such adjustment; (ii)increased from such amount by the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers; and (iii)rounded to the nearest multiple of $1.00. (2)

Special rule

Notwithstanding paragraph (1), for any employee for whom the minimum wage would otherwise be determined pursuant to section 8103(b) of the Fair Minimum Wage Act of 2007 (29 U.S.C. 206 note), the Secretary may determine, through regulations, the salary rate (or equivalent fee basis).(l)

Primary duty

In any case where an employer classifies an employee as an employee employed in a bona fide executive, administrative, or professional capacity, for the purpose of subsection (a)(1), or in a position described in subsection (a)(17), for the purpose of such subsection, such employee shall not spend more than 50 percent of such employee's work hours in a workweek on duties that are not exempt under paragraph (1) or (17) of subsection (a), respectively.(m)

Definitions

For the purposes of this section: (1)

Annual percentage increase

The term annual percentage increase, when used in reference to the Consumer Price Index for Urban Wage Earners and Clerical Workers, means the annual percentage increase calculated by the Secretary by comparing such Consumer Price Index for the most recent month, quarter, or year available (as selected by the Secretary prior to the first year for which a minimum wage is in effect pursuant to this subsection) with such Consumer Price Index for the same month in the preceding year, the same quarter in the preceding year, or the preceding year, respectively. (2)

Consumer Price Index for Urban Wage Earners and Clerical Workers

The term Consumer Price Index for Urban Wage Earners and Clerical Workers means the Consumer Price Index for Urban Wage Earners and Clerical Workers (United States city average, all items, not seasonally adjusted), or its successor publication, as determined by the Bureau of Labor Statistics.

(b)

Highly compensated employees

(1)

In general

If the Secretary of Labor, in the discretion of such Secretary, determines that an employee may be exempt for purposes of section 13(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 213(a)(1)), as a highly compensated employee (as such term is defined and delimited by the Secretary), then the level of total annual compensation necessary for such exemption shall be— (A)beginning 1 year after the first day of the first month that begins after the date of enactment of this Act, $108,000;(B)beginning 2 years after such first day, $116,000; (C)beginning 3 years after such first day, $125,000; and(D)beginning on the date that is 4 years after such first day, and for each succeeding calendar year, an adjusted amount that is— (i)not less than the amount in effect under this paragraph on the day before the date of such adjustment; (ii)increased from such amount by the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers; and (iii)rounded to the nearest multiple of $1.00. (2)

Rule of construction

Nothing in this subsection or the regulations promulgated by the Secretary of Labor under this subsection shall override any provision of a collective bargaining agreement that provides for overtime employment compensation, or rights to such compensation, that exceed the requirements of the Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.). (3)

Definitions

For purposes of this subsection, the terms annual percentage increase and Consumer Price Index for Urban Wage Earners and Clerical Workers have the meanings given the terms in section 13(m) of the Fair Labor Standards Act of 1938 (29 U.S.C. 213(m)), as added by subsection (a).(c)

Publication of notice

(1)

In general

Not later than 60 days before the effective date of any adjustment in the salary rate (or equivalent fee basis) required under section 13(k)(1)(D) of the Fair Labor Standards Act of 1938 (29 U.S.C. 213(k)(1)(D)), as added by subsection (a), or any adjustment in the amount of compensation required for the highly compensated employee exemption required under subsection (b), the Secretary of Labor shall publish, in the Federal Register and on the website of the Department of Labor, a notice announcing the adjusted salary rate (or equivalent fee basis) or adjusted amount of compensation, respectively.(2)

Nonapplicability of rulemaking requirements

The provisions of section 553 of title 5, United States Code, shall not apply to any notice required under this subsection. (d)

Penalties

Section 16(e)(2) of the Fair Labor Standards Act of 1938 (29 U.S.C. 216(e)(2)) is amended by inserting or section 11(c), relating to the records that each employer is required to make, keep, and preserve, after relating to wages,.(e)

Effective date

This Act, and the amendments made by this Act, shall take effect on the date that is 1 year after the first day of the first month that begins after the date of enactment of this Act.