DOL to Issue New Overtime Rule

Under a new regulation proposed by the Department of Labor, workers who make up to $35,308 per year would be eligible for time-and-a-half pay for all hours worked beyond 40 a week. The current threshold is $24,000. The new threshold is considerably less than that proposed by the Obama administration — $47,476 – which was blocked by the courts.

As anticipated, the proposed rule does not provide for a controversial automatic increase of the salary threshold but leaves that option open by requesting public comment on the prospect of an agency consideration of a salary update in new rulemaking every four years. Very significantly, the proposed rule also makes no changes to the current “duties test,” a hotly debated subject in the prior rounds of notice and comment.

FortneyScott will keep you updated on the impact of this proposed regulation.