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