Department of Labor Announces New Overtime Proposal
On March 7, 2019 the Department of Labor announced a proposed rule that would make more than a million more American workers eligible for overtime.
The NPRM includes:
The proposal increases the minimum salary required for an employee to qualify for exemption from the currently-enforced level of $455 to $679 per week (equivalent to $35,308 per year).
The proposal increases the total annual compensation requirement for “highly compensated employees” (HCE) from the currently-enforced level of $100,000 to $147,414 per year.
A commitment to periodic review to update the salary threshold. An update would continue to require notice-and-comment rulemaking.
Allowing employers to use nondiscretionary bonuses and incentive payments (including commissions) that are paid annually or more frequently to satisfy up to 10 percent of the standard salary level.
No changes in overtime protections for:
Laborers including: non-management production-line employees
Non-management employees in maintenance, construction and similar occupations such as carpenters, electricians, mechanics, plumbers, iron workers, craftsmen, operating engineers, longshoremen, and other construction workers
No changes to the job duties test.
No automatic adjustments to the salary threshold.
Get More Information:
More information about the proposed rule is available at: http://www.dol.gov/whd/overtime2019
The Department encourages any interested members of the public to submit comments about the proposed rule electronically at http://www.regulations.gov, in the rule-making docket RIN 1235-AA20.
As of March 22, 2019 the proposal is open for public comment. Comments must be received by May 21, 2019 to be considered.
The Department will consider all timely comments in developing a final rule.