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New Dept. of Labor Rule: Overtime Exemptions

Published:  March 12, 2019

The United States Department of Labor recently released its much anticipated proposed rule for overtime exemptions. The new rule contemplates several substantive changes.  Perhaps the most important change for employers is an increase in the salary threshold from the current $455.00 per week to $679.00 per week. This would result in an increase in the minimum for a salaried worker to $35,308 annually. Employers will therefore want to review their plans so they are adequately prepared in the event the proposed rule becomes law.

Other highlights of the new rule include:

-          No change to the current job duties test

-          A commitment to periodic review of the overtime exemption; and

-          An increase in the total compensation requirement of a “highly compensated employee” from $100,00 to $147,414 per year

Because this is still a proposed rule, the DOL is still seeking public comment. This means there could be changes to the proposed rule before it becomes a law.

Further information on the new rule can be found here: https://www.dol.gov/whd/overtime2019/

If you have any questions about wage and hour law, or any other aspect of employment law, please contact the attorneys at Royal, P.C.

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