The U.S. Department of Labor (the “D.O.L.”) announced on Friday, March 7, 2019, that it will be reviewing the salary that must be paid to workers exempt from the overtime requirements of the Fair Labor Standards Act. The D.O.L. has proposed a change to the salary paid to exempt executive, administrative and professional employees which makes those employee ineligible for overtime pay for hours worked in excess of forty (40) in a workweek.
Under the current rule, all employees with a salary below $455 a week, or $23,660 per year, must be paid overtime if they work more than forty (40) hours per week. Employees who make $455 per week or more, and who also meet the other tests applicable to exempt executive, administrative and professional employees are exempt from these overtime requirements.
The proposed rule issued by the Trump Administration would increase the standard salary level from $455 to $679 per week, or $35,308 per year. The D.O.L. estimates that this change will make a million more Americans eligible for overtime compensation.
Those wishing to comment on this proposed rule will have sixty (60) days from March 7, 2019, to submit their comments to the D.O.L. Employers should stayed tuned to the D.O.L. website as it is expected that this rule will become final later this year.