U.S. Department Of Labor Releases
Long-Awaited Overtime Proposal
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The Department of Labor (DOL) has proposed an increase in the salary-level threshold for white-collar exemptions to $35,308 per year from $23,660; a ruling that would classify more than 1 million exempt workers as non-exempt and cause an increase in pay for others above the new threshold.
The Current Weekly Salary Thresholds:
- Under the DOL’s current law, employees with a salary below $455 per week ($23,660 annually) must be paid overtime if they work more than 40 hours per week.
- Workers making at least this salary level may be eligible for overtime based on their job duties. This salary level was set in 2004.
The DOL’s New Proposal:
- The DOL’s new proposal would update the salary threshold using current wage data, projected to January 1, 2020.
- The result would boost the standard salary level from $455 to $679 per week (equivalent to $35,308 per year).
The DOL is also asking for public comment on the NPRM’s language for periodic review to update the salary threshold. An update would continue to require notice-and-comment rule-making.
In developing the proposal, the Department received extensive public input from six in-person listening sessions held around the nation and more than 200,000 comments as part of a 2017 Request for Information (RFI).
Get More Information:
Once the rule is published in the Federal Register, the public will have 60 days to submit comments for those comments to be considered.
If You Are A Client Of Ours:
If you are a client of ours and want to know how the DOL's new proposal might affect your payroll, please contact us ASAP. Remember, the new overtime proposal is just that, a proposal; therefore, you will have plenty of time to manage your payroll prior to becoming law.
