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:

  • Police Officers

  • Fire Fighters

  • Paramedics

  • Nurses

  • 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.

https://www.dol.gov/newsroom/releases/whd/whd20190322

The Department will consider all timely comments in developing a final rule.

#Overtime #departmentoflabor

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