09/01/2023

DOL Proposes New Overtime Salary Threshold

However, the suggested change is likely to face legal challenges

On August 30, the Biden administration issued a Notice of Proposed Rulemaking from the Department of Labor to extend overtime pay eligibility to more than 3 million workers.

The initiative comes following a similar attempt by the Obama administration over eight years ago to revise overtime eligibility regulations under the Fair Labor Standards Act (FLSA). Under the new proposal, employers would be required to provide time-and-a-half pay for eligible workers who work beyond 40 hours per week. The previous threshold for this requirement set in 2019 by the Trump administration—$35,568—would be increased to $55,000.

Under FLSA, employees are entitled to receive premium overtime pay when they work over 40 hours per week, unless the employee is considered exempt from these requirements. Employees whose primary duties fall under the executive, administrative and professional (EAP) exemption; who are paid on a salary basis; and whose compensation meets the minimum salary level are exempt from overtime requirements.

Please select this link to read the complete article from Associations Now.