DOL Issues Long-Anticipated Update to Overtime Rule

September 24, 2019

This morning, the U.S. Department of Labor’s Wage & Hour Division (WHD) announced a final rule updating the overtime eligibility requirements for workers under the federal Fair Labor Standards Act (FLSA).

Most notably, the final rule bumps up the minimum salary threshold required for workers to be exempt under the FLSA’s “white-collar” exemptions—that is, the executive, administrative, and professional exemptions. The new threshold of $35,568 is a significant increase from the previous threshold of $23,660 , an amount which has not been revised since 2004. However, the new threshold falls far short of the $47,476 level proposed in a scuttled Obama-era rule in 2016.

Very importantly, the final rule makes no changes to the current “duties test” for exemptions —a hotly debated subject during the rulemaking process. Nor does the final rule call for an automatic update of the salary threshold, another controversial feature in the blocked Obama rule.

Other significant components of the final rule include:

  • Updating the salary threshold for the “highly compensated employee” exemption from $100,000 to $107,432 per year;
  • Allowing employers to use nondiscretionary bonuses and incentive payments (including commissions) that are paid at least annually to satisfy up to 10 percent of the standard salary level; and
  • Revising the special salary levels for workers in U.S. territories and in the motion picture industry.

According to a WHD press release , the final rule will make an additional 1.3 million American workers eligible for overtime pay.

Next Steps

While the rule is scheduled to go into effect on January 1, 2020 , it is widely expected that it will be challenged immediately in federal courts by Democrats and worker advocate groups, with the intent of enjoining and invalidating the rule in favor of one more akin to the Obama rule.

The final rule’s release coincides with a Senate committee confirmation vote today on Trump nominee for Labor Secretary, Eugene Scalia. Scalia is expected to clear the committee vote and ultimately win confirmation by the Republican-controlled Senate.

FortneyScott will keep you updated on the status and impact of this final rule. If you have any questions, please contact your FortneyScott attorney, or e-mail FortneyScott .

December 18, 2025
Join FortneyScott attorneys for a complimentary webinar on how employers should prepare for 2026 based on the significant changes in 2025. The Trump Administration begins 2026 with a quorum at the EEOC, new leadership at all the DOL agencies, and the likelihood that the NLRB quorum will be restored soon, so employers should expect aggressive action by all the workforce agencies. This session will provide critical insights into: What to expect from EEOC with its new quorum; An activated DOL, including the new Wage & Hour Division priorities, such as revisions to the Biden-era rules on white collar exemptions and joint employment; new Opinion Letters and compliance tools, how AI is being addressed, and expected developments; Whether OFCCP will survive in 2026, and changes affecting Federal contractors and grant recipients; and Practical steps employers should consider before 2026 begins. This is the final presentation in FortneyScott’s four-part Workplace Legal Compliance Webinar Series 2025, designed for in-house counsel, compliance professionals, HR leaders, and business executives.
December 18, 2025
Join FortneyScott attorneys for a timely webinar addressing the Trump Administration’s escalating enforcement efforts targeting “illegal DEI” practices among federal contractors, grant recipients, and higher education institutions. In recent months, the Administration has initiated certification demands, expanded DOJ investigations under the False Claims Act, and increased EEOC scrutiny under Title VII. This session will provide critical insights into: The latest developments in federal investigations and enforcement; DEI programs under legal challenge; and Practical steps employers—especially federal contractors and grant recipients—should take now to mitigate legal risk and ensure compliance with EEO laws. This is the third installment in FortneyScott’s four-part Workplace Legal Compliance Webinar Series, designed for in-house counsel, compliance professionals, HR leaders, and business executives.
December 10, 2025
December 18, 2025 at noon EDT CLICK HERE to Register Join FortneyScott attorneys for a complimentary webinar on how employers should prepare for 2026 based on the significant changes in 2025. The Trump Administration begins 2026 with a quorum at the EEOC, new leadership at all the DOL agencies, and the likelihood that the NLRB quorum will be restored soon, so employers should expect aggressive action by all the workforce agencies. This session will provide critical insights into: What to expect from EEOC with its new quorum; An activated DOL, including the new Wage & Hour Division priorities, such as revisions to the Biden-era rules on white collar exemptions and joint employment; new Opinion Letters and compliance tools, how AI is being addressed, and expected developments; Whether OFCCP will survive in 2026, and changes affecting Federal contractors and grant recipients; and Practical steps employers should consider before 2026 begins. This is the final presentation in FortneyScott’s four-part Workplace Legal Compliance Webinar Series 2025, designed for in-house counsel, compliance professionals, HR leaders, and business executives. To register for FortneyScott’s Workplace Legal Compliance training series, please click here .
November 19, 2025
The longest US government shutdown has ended; the House will return to Washington and Congress will resume operations; the EEOC has a quorum and can fully operate; the leadership teams for all DOL agencies now are in place; the NLRB waits to learn the fate of its Members; and, the U.S. Supreme Court will be confronting its Emergency Rulings (the “shadow docket”) in merits rulings on the regular docket in several high stakes cases. Everyone in Washington, the US, and, indeed, the whole world is watching and trying to plan their next steps. Join the Employment Law Alliance (ELA) for an engaging and timely webinar where speakers will discuss what is likely to unfold regarding the workplace and beyond. They will offer practical guidance both for US companies and those that do business with the US .
October 30, 2025
November 20, 2025 at noon EDT CLICK HERE to Register Join FortneyScott attorneys for a timely webinar addressing the Trump Administration’s escalating enforcement efforts targeting “illegal DEI” practices among federal contractors, grant recipients, and higher education institutions. In recent months, the Administration has initiated certification demands, expanded DOJ investigations under the False Claims Act, and increased EEOC scrutiny under Title VII. This session will provide critical insights into: The latest developments in federal investigations and enforcement; DEI programs under legal challenge; and Practical steps employers—especially federal contractors and grant recipients—should take now to mitigate legal risk and ensure compliance with EEO laws. This is the third installment in FortneyScott’s four-part Workplace Legal Compliance Webinar Series, designed for in-house counsel, compliance professionals, HR leaders, and business executives. To register for FortneyScott’s Workplace Legal Compliance training series, please click here .
October 23, 2025
Understanding that everyone is going into Q4, which is the kickoff of your merit and compensation cycles, we want to support those compliance efforts. Join FortneyScott attorneys and our guest speaker, Rick Holt from Resolution Economics, on Thursday, October 23, 2025, at noon EDT for a discussion on strategies for reviewing compensation decisions under the governing legal standards and the Trump Administration’s enforcement priorities.  We will focus on discussing: Changes in legal enforcements; Legal considerations for conducting pay analyses; Recommendations on refreshing analysis models; and, Remediation strategies.
Show More
December 18, 2025
Join FortneyScott attorneys for a complimentary webinar on how employers should prepare for 2026 based on the significant changes in 2025. The Trump Administration begins 2026 with a quorum at the EEOC, new leadership at all the DOL agencies, and the likelihood that the NLRB quorum will be restored soon, so employers should expect aggressive action by all the workforce agencies. This session will provide critical insights into: What to expect from EEOC with its new quorum; An activated DOL, including the new Wage & Hour Division priorities, such as revisions to the Biden-era rules on white collar exemptions and joint employment; new Opinion Letters and compliance tools, how AI is being addressed, and expected developments; Whether OFCCP will survive in 2026, and changes affecting Federal contractors and grant recipients; and Practical steps employers should consider before 2026 begins. This is the final presentation in FortneyScott’s four-part Workplace Legal Compliance Webinar Series 2025, designed for in-house counsel, compliance professionals, HR leaders, and business executives.
December 18, 2025
Join FortneyScott attorneys for a timely webinar addressing the Trump Administration’s escalating enforcement efforts targeting “illegal DEI” practices among federal contractors, grant recipients, and higher education institutions. In recent months, the Administration has initiated certification demands, expanded DOJ investigations under the False Claims Act, and increased EEOC scrutiny under Title VII. This session will provide critical insights into: The latest developments in federal investigations and enforcement; DEI programs under legal challenge; and Practical steps employers—especially federal contractors and grant recipients—should take now to mitigate legal risk and ensure compliance with EEO laws. This is the third installment in FortneyScott’s four-part Workplace Legal Compliance Webinar Series, designed for in-house counsel, compliance professionals, HR leaders, and business executives.
December 10, 2025
December 18, 2025 at noon EDT CLICK HERE to Register Join FortneyScott attorneys for a complimentary webinar on how employers should prepare for 2026 based on the significant changes in 2025. The Trump Administration begins 2026 with a quorum at the EEOC, new leadership at all the DOL agencies, and the likelihood that the NLRB quorum will be restored soon, so employers should expect aggressive action by all the workforce agencies. This session will provide critical insights into: What to expect from EEOC with its new quorum; An activated DOL, including the new Wage & Hour Division priorities, such as revisions to the Biden-era rules on white collar exemptions and joint employment; new Opinion Letters and compliance tools, how AI is being addressed, and expected developments; Whether OFCCP will survive in 2026, and changes affecting Federal contractors and grant recipients; and Practical steps employers should consider before 2026 begins. This is the final presentation in FortneyScott’s four-part Workplace Legal Compliance Webinar Series 2025, designed for in-house counsel, compliance professionals, HR leaders, and business executives. To register for FortneyScott’s Workplace Legal Compliance training series, please click here .
November 19, 2025
The longest US government shutdown has ended; the House will return to Washington and Congress will resume operations; the EEOC has a quorum and can fully operate; the leadership teams for all DOL agencies now are in place; the NLRB waits to learn the fate of its Members; and, the U.S. Supreme Court will be confronting its Emergency Rulings (the “shadow docket”) in merits rulings on the regular docket in several high stakes cases. Everyone in Washington, the US, and, indeed, the whole world is watching and trying to plan their next steps. Join the Employment Law Alliance (ELA) for an engaging and timely webinar where speakers will discuss what is likely to unfold regarding the workplace and beyond. They will offer practical guidance both for US companies and those that do business with the US .
October 30, 2025
November 20, 2025 at noon EDT CLICK HERE to Register Join FortneyScott attorneys for a timely webinar addressing the Trump Administration’s escalating enforcement efforts targeting “illegal DEI” practices among federal contractors, grant recipients, and higher education institutions. In recent months, the Administration has initiated certification demands, expanded DOJ investigations under the False Claims Act, and increased EEOC scrutiny under Title VII. This session will provide critical insights into: The latest developments in federal investigations and enforcement; DEI programs under legal challenge; and Practical steps employers—especially federal contractors and grant recipients—should take now to mitigate legal risk and ensure compliance with EEO laws. This is the third installment in FortneyScott’s four-part Workplace Legal Compliance Webinar Series, designed for in-house counsel, compliance professionals, HR leaders, and business executives. To register for FortneyScott’s Workplace Legal Compliance training series, please click here .
October 23, 2025
Understanding that everyone is going into Q4, which is the kickoff of your merit and compensation cycles, we want to support those compliance efforts. Join FortneyScott attorneys and our guest speaker, Rick Holt from Resolution Economics, on Thursday, October 23, 2025, at noon EDT for a discussion on strategies for reviewing compensation decisions under the governing legal standards and the Trump Administration’s enforcement priorities.  We will focus on discussing: Changes in legal enforcements; Legal considerations for conducting pay analyses; Recommendations on refreshing analysis models; and, Remediation strategies.
October 7, 2025
On Tuesday, December 2, at 2pm EST , join attorneys from Novus Law Firm and FortneyScott and an I/O Psychologist from DCI as we discuss the scope of data being requested by the federal government and how to ensure that your institution is prepared. To register for this complimentary webinar, please CLICK HERE . Higher Education continues to be targeted by the Administration’s enforcement efforts to ensure compliance with federal anti-discrimination laws. Employment and admissions practices are subject to increased scrutiny by multiple federal agencies. For instance, both the Department of Justice (DOJ) and Health & Human Services (HHS) have issued Civil Investigation Demand (CID) letters requiring the submission of voluminous data and documents. These investigations pose significant risks, including potential civil and criminal lability, and the loss of federal contracts and grants. Additionally, the Department of Education (ED) has proposed major changes to the Integrated Postsecondary Education Data System (IPEDS) which, if implemented, would require institutions to report up to six years of detailed admissions data including applicant demographics and admissions criteria for undergraduate and graduate programs. Given this rapidly changing legal compliance landscape, higher education institutions should be prepared for government investigations that scrutinize wide-ranging practices, including those related to employment, admissions, and compensation. We will cover: Responding to federal agency investigations, which can include CIDs & scope of data production How to prepare for a potential investigation How the proposed IPED revisions may impact reporting burdens How federal agencies may use and share institute data Prospective data analytics that should be conducted
October 1, 2025
Understanding that everyone is going into Q4, which is the kickoff of your merit and compensation cycles, we want to support those compliance efforts. Join FortneyScott attorneys and our guest speaker, Rick Holt from Resolution Economics, on Thursday, October 23, 2025, at noon EDT for a discussion on strategies for reviewing compensation decisions under the governing legal standards and the Trump Administration’s enforcement priorities. We will focus on discussing: Changes in legal enforcements; Legal considerations for conducting pay analyses; Recommendations on refreshing analysis models; and, Remediation strategies.  To register for FortneyScott’s Workplace Legal Compliance training series, please click here .
September 18, 2025
Federal policies under the Trump Administration are reshaping workplaces nationwide. Employers must stay ahead of evolving laws and shifting EEOC priorities. Join FortneyScott attorneys on Thursday, September 18th at noon EDT to learn the key steps organizations should take now to ensure compliance with EEO laws influenced by these broader policy changes. Key Topics to be Covered Include: Status of the Commission and what to expect once there is a restored quorum; Current EEOC priorities , including protecting religious liberties, eliminating unlawful DEI, and reshaping sex discrimination; Notable EEOC enforcement actions, updates, and emerging trends; and Actionable strategies and key takeaways to ensure compliance with Title VII, the PWFA, etc . This webinar is the first in a four-part series designed for compliance professionals, in-house counsel, HR and inclusion leaders, and other business leaders responsible for labor and employment law compliance.
September 4, 2025
Federal policies under the Trump Administration are reshaping workplaces nationwide. Employers must stay ahead of evolving laws and shifting EEOC priorities. Join FortneyScott attorneys on Thursday, September 18 th at noon EDT to learn the key steps organizations should take now to ensure compliance with EEO laws influenced by these broader policy changes. Key Topics to be Covered Include: Status of the Commission and what to expect once there is a restored quorum; Current EEOC priorities , including protecting religious liberties, eliminating unlawful DEI, and reshaping sex discrimination; Notable EEOC enforcement actions, updates, and emerging trends; and Actionable strategies and key takeaways to ensure compliance with Title VII, the PWFA, etc. This webinar is the first in a four-part series designed for compliance professionals, in-house counsel, HR and inclusion leaders, and other business leaders responsible for labor and employment law compliance. To register for FortneyScott’s Workplace Legal Compliance training series, please click here .
More Posts