Overtime Update: Administration Proposes Raising Threshold to 35k/yr; Would Affect 1 Million Workers

proposed increase to overtime salary minimum
Avatar photo

Liz Strikwerda

Content strategist and corporate blogger (2000+ posts). Her work has been featured on G2's Learning Hub, Human Resources Today, Better Buys and over 500 business websites. She plays bluegrass mandolin and enjoys sailing her catamaran and hiking in the red rock wilderness of southern Utah. Connect with me on LinkedIn

3 minute read

Department of Labor Overtime Increase Update

On March 7, 2019, DOL Secretary Alex Acosta announced a proposal to increase the salary threshold to $35,308 ($679 per week). This means that non-exempt employees covered under the FLSA would be eligible for overtime pay if they earn that amount or less.

The current overtime threshold is $23,660 annually ($455 per week). If passed, it is estimated that an additional 1 million workers would be eligible for overtime benefits.

The Overtime Salary Threshold Has Not Been Raised Since 2004

The last increase to the overtime threshold took effect in 2004.

The previous administration proposed to raise the salary threshold to $47,000 in 2016. This proposal was challenged in court over concerns the increase could hurt employers. The new limit may also have included some management employees who are classified as exempt from overtime benefits under the FLSA. The proposal was not adopted at that time.

60-Day Public Comment Period

There is now a public comment period on the proposed change. During this period, employers are governed by the $23,660 limit that has been in force for 15 years.

The public can submit comments about the proposed rule at www.regulations.gov, in the rulemaking docket RIN 1235-AA20. Once the rule is published in the Federal Register (which hasn’t happened as of this writing), the public will have 60 days to submit comments for consideration. More information on the proposal is available at www.dol.gov/whd/overtime2019.

Avoid Overtime Penalties

WorkforceHub has time and attendance tools that help employers comply with overtime laws. Visit Time and Attendance for more information.

By Liz Strikwerda

Simplify HR management today.

Simplify HR management today.

FMLA recordkeeping requirements for businesses (1)

Don’t Miss These 7 Recordkeeping Requirements for FMLA Compliance

May 22, 2023
Posted in

Updated May 22, 2023 The Department of Labor continues to increase investigator’s ability to pursue FMLA (Family Medical Leave Act) complaints. In 2023, lawmakers noted the 30th anniversary of the passing of the FMLA and introduced new actions to support and advance economic security for women. These actions included encouraging federal agency heads to provide…

Read More
sick leave

Everything You Need to Know About a Leave of Absence Policy

March 28, 2023
Posted in ,

Business owners know that it’s difficult to maintain high productivity and engagement levels when employees aren’t present at work. But there are instances in which team members need to take time away from their jobs, whether to recover from a short-term illness or to manage a longer-term need. For this reason, it’s vital to have…

Read More
brand-workforce-shower

WorkforceHub takes care of business.

We’ll show you how.

Request a Demo - Footer Form

Looking for log-in help? Please reach out to your HR or payroll manager. For all other help click here.

brand - dots