Department of Labor Announces Proposed Rule to Update Overtime Threshold

DBL Law Alexis Switzer Overtime Threshold Ruling

Today, the U.S. Department of Labor (“DOL”) announced a notice of proposed rulemaking that would update the salary threshold under which employees are eligible for overtime pay under federal labor law.  The proposed rule would provide overtime pay for most salaried workers earning under $55,000 per year.

The proposed rule would include the following:

  • Implement and extend overtime protections to certain salaried workers.  Under the current rules, only workers with an annual salary less than $35,568 are entitled to time-and-a-half for hours worked over 40 in a week.  The DOL’s proposed salary level ($1,059 per week/$55,000 per year) would ensure that salaried workers making less than $55,000  receive overtime compensation and protections.
  • Update the requirements for classifying salaried-exempt executive, administrative and professional employees.
  • Automatically update the salary threshold every three years to reflect current earnings data.

Upon publication in the Federal Register, the notice of proposed rulemaking will be open for public comment for 60 days prior to publication of a final rule.