Labor Department Proposes Changes to Overtime Rules

News

The U.S. Department of Labor just announced long-awaited proposed revisions to the existing overtime regulations that would impact which employees are eligible to receive overtime pay under the Fair Labor Standards Act.

Under the current law, employers are required to pay overtime pay to any employee who does not earn a salary of at least $455 per week ($23,660 per year) whenever the employee works more than 40 hours in a week.  The proposed change would increase that “salary basis” threshold, so that any employee who does not make a salary of at least $679 per week ($35,308) must get overtime pay.

The proposed changes are subject to a 60-day comment period.  The Labor Department expects the changes to take effect in January 2020.

More information, including the official Notice of Proposed Rulemaking, about these and other proposed changes is available here.

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