COMP NEWS – The U.S. Department of Labor is updating the way workers may be included or excluded from overtime pay requirements.
- The U.S. Department of Labor’s final rule updating the standard by which some workers may be excluded from the overtime pay requirements of the Fair Labor Standards Act cleared review by the White House Thursday.
- The details have not been made public but DOL last year proposed to increase the minimum annual salary threshold that determines overtime pay eligibility from $35,568 to $55,068. If adopted as proposed, the rule also would provide for automatic future updates to the threshold every three years. The exemption applies to workers employed as bona fide executive, administrative, professional and outside sales employees, as well as some computer employees.
- The final rule now must be published in the Federal Register before it can take effect. In December, DOL projected that the rule would be published in April.
While the exact details of the changes are unknown, they are expected to be reveals in the coming weeks.
One of the most anticipated regulatory updates in employment law appears to be right on schedule. Employers could see the final rule appear as early as the end of next week, if not sooner, said Brett Coburn, partner at Alston & Bird.
In public comments on DOL’s initial proposal, the Society for Human Resource Management asked DOL to consider delaying the final rule’s effective date to 2025, which SHRM said would allow employers to “tie any classification or pay-related changes into budgeting efforts and operational changes for the new year.”
Until the final rule is published, however, it is uncertain what changes the department will make to its initial proposal. That includes the effective date of the rule as well as the salary threshold itself. While the proposed rule set the annual minimum at $55,068, the agency indicated in the proposal that this could change.
To read more about the Department of Labor’s new overtime requirements, click here.
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