On Wednesday August 30th, the Department of Labor issued a proposed rule to increase the threshold for salaried workers to receive overtime pay. The DOL estimates that over 3 million workers would receive these new protections. The proposal would guarantee overtime pay to those that make up to $55,068 annually ($1,059 per week). Currently, the overtime threshold is at $35,568 annually ($684 per week).
Additionally the proposed rule would also have the following changes:
- The salary threshold will be automatically updated every three years.
- Raise the threshold for the “highly compensated employee” exemption to $143,988 (from the current threshold of $107,432).
- Apply salary thresholds in U.S. territories that are subject to federal minimum wage with some exceptions for American Samoa.
As noted in the release, the notice of proposed rule making will be open for public comment for 60 days. After the 60 day period, the DOL will consider all comments and issue a final rule.
We will continue to monitor, and issue updates as they are released. If you would like specific advice, please open up a ticket in our Ask an Attorney portal, and one of our attorneys will be happy to help.
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