The Department of Labor (DOL) has published a Notice of Proposed Rulemaking (NPRM) that would make more than a million more American workers eligible for overtime.
Currently, 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 proposal would increase the standard salary level to $679 per week (equivalent to $35,308 per year). Above this salary level, eligibility for overtime varies based on job duties.
Employers should note this is just a proposal and must go through the formal rule making process, which includes a comment period. The prior proposed increase was abandoned following litigation from business groups and states, leaving the FLSA salary threshold at $23,660 for the white-collar exemptions. Although the new salary proposal is lower than the previous proposed increase, various parties may seek to block the change again.
For more information contact us.