29 CFR § 541.607 - Automatic updates to amounts of salary and compensation required.

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§ 541.607 Automatic updates to amounts of salary and compensation required.

(a) Standard salary level. The amount required to be paid to an exempt employee on a salary or fee basis, as applicable, pursuant to §§ 541.100(a)(1), 541.200(a)(1), 541.204(a)(1), 541.300(a)(1), 541.400(b), 541.600(a)-(b), 541.601(b)(1), 541.604(a), and 541.605(b), is:

(1) $913 per week as of December 1, 2016; and

(2) Beginning on January 1, 2020, and every three years thereafter, updated to equal the 40th percentile of weekly earnings of full-time nonhourly workers in the lowest-wage Census Region in the second quarter of the year preceding the update as published by the Bureau of Labor Statistics.

(b) American Samoa. The amount required to be paid to an exempt employee employed in American Samoa, on a salary or fee basis, pursuant to §§ 541.100(a)(1), 541.200(a)(1), 541.204(a)(1), 541.300(a)(1), 541.400(b), and 541.600(a), is:

(1) $767 per week as of December 1, 2016; and

(2) Beginning on January 1, 2020, and every three years thereafter:

(i) Updated to correspond to 84 percent of the updated salary set in paragraph (a)(2) of this section; and

(ii) Rounded to the nearest multiple of $1.00;

(3) Provided that when the highest industry minimum wage for American Samoa equals the minimum wage under 29 U.S.C. 206(a)(1), exempt employees employed in all industries in American Samoa shall be paid the rate specified in paragraph (a) of this section.

(c) Motion picture producing industry. The amount required to be paid to an exempt motion picture producing employee pursuant to § 541.709 is:

(1) $1,397 per week as of December 1, 2016; and

(2) Beginning on January 1, 2020, and every three years thereafter:

(i) Updated from the previously applicable base rate, adjusted by the same percentage as the updated salary set in paragraph (a)(2) of this section; and

(ii) Rounded to the nearest multiple of $1.00.

(d) The amount required in total annual compensation for an exempt highly compensated employee pursuant to § 541.601, is:

(1) $134,004 per year as of December 1, 2016; and

(2) Beginning on January 1, 2020, and every three years thereafter, updated to correspond to the annualized earnings amount of the 90th percentile of full-time nonhourly workers nationally in the second quarter of the year preceding the update as published by the Bureau of Labor Statistics.

(e) The Secretary will determine the lowest-wage Census Region for paragraphs (a) and (b) of this section using the 40th percentile of weekly earnings of full-time nonhourly workers in the Census Regions based on data from the Current Population Survey as published by the Bureau of Labor Statistics.

(f) The Secretary will use the 90th percentile of weekly earnings data of full-time nonhourly workers nationally based on data from the Current Population Survey as published by the Bureau of Labor Statistics for paragraph (d) of this section.

(g) Not less than 150 days before the January 1st effective date of the updated earnings requirements for this section, the Secretary will publish a notice in the Federal Register stating the updated amounts for paragraphs (a) through (d) of this section.

(h) The Wage and Hour Division will publish and maintain on its Web site the applicable earnings requirements for employees paid pursuant to this part.

[81 FR 32551, May 23, 2016]