DOL Issues Long-Anticipated Update to Overtime Rule
Sep 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 .
The EEOC’s final Pregnant Workers Fairness Act (“PWFA”) regulations were republished in the Federal Register on April 19 and will become effective on June 18th. The final regulations and guidance clarified and, in some cases, expanded on employers’ accommodation obligations for pregnancy related conditions from what the EEOC originally included in the proposed regulations.
On March 29, 2024, the Office of Management and Budget published revisions to federal data that covered entities must collect on race and ethnicity.
On January 29, 2024, on the 15th anniversary of the enactment of the Lily Ledbetter Fair Pay Act, the Biden Administration announced a proposed regulation to prohibit federal contractors and subcontractors from using job applicant’s prior salary history when setting pay and to require federal contractors to disclose the expected salary range in job postings. The proposal was published in the Federal Register on January 30, 2024 and comments were due on April 1, 2024.
OFCCP announced on March 25, 2025 that its contractor portal will open for federal contractor certification on April 1, 2024 and close on July 1, 2024.
Join our skilled presenters as they discuss the actions of the DOL (Wage & Hour; OFCCP; OSHA), the NLRB, and recent Court arguments confronting the Chevron doctrine, with a focus on the impact on the workplace.
On January 30, 2024, the Biden Administration published a proposed regulation to prohibit federal contractors and subcontractors from using job applicant’s prior salary history when setting pay and to require federal contractors to disclose the expected salary range in job postings.
The EEOC’s final Pregnant Workers Fairness Act (“PWFA”) regulations were republished in the Federal Register on April 19 and will become effective on June 18th. The final regulations and guidance clarified and, in some cases, expanded on employers’ accommodation obligations for pregnancy related conditions from what the EEOC originally included in the proposed regulations.
On March 29, 2024, the Office of Management and Budget published revisions to federal data that covered entities must collect on race and ethnicity.
On January 29, 2024, on the 15th anniversary of the enactment of the Lily Ledbetter Fair Pay Act, the Biden Administration announced a proposed regulation to prohibit federal contractors and subcontractors from using job applicant’s prior salary history when setting pay and to require federal contractors to disclose the expected salary range in job postings. The proposal was published in the Federal Register on January 30, 2024 and comments were due on April 1, 2024.
OFCCP announced on March 25, 2025 that its contractor portal will open for federal contractor certification on April 1, 2024 and close on July 1, 2024.
Join our skilled presenters as they discuss the actions of the DOL (Wage & Hour; OFCCP; OSHA), the NLRB, and recent Court arguments confronting the Chevron doctrine, with a focus on the impact on the workplace.
On January 30, 2024, the Biden Administration published a proposed regulation to prohibit federal contractors and subcontractors from using job applicant’s prior salary history when setting pay and to require federal contractors to disclose the expected salary range in job postings.
On January 9, 2024, the Department of Labor’s Wage and Hour Administration (“W&H”) issued its long-awaited final regulation, “Employee or Independent Contractor Classification Under the Fair Labor Standards Act.”
FortneyScott is pleased to announce that its co-founder Jacqueline Scott became President of the global bar organization, Union Internationale des Avocats (UIA). As President of the UIA, Jacqueline Scott has responsibility for overseeing and leading the UIA’s attorney members in 110 countries. UIA fosters professional development and the exchange of information and ideas internationally, promotes the rule of law, defends the independence and freedom of lawyers worldwide, and emphasizes friendship, collegiality and networking among members. Additional information on Ms. Scott and her new UIA responsibilities is available here .
For the first time as President of the Union Internationale des Avocats ("UIA"), FortneyScott co-founder Jacqueline Scott attended the 67th UIA Congress in Italy late last month. The UIA is a global, multicultural organization that brings together the legal profession and whose members represent 110 countries. Ms. Scott provided her first Presidential Speech for the closing of the Congress, "Defense of the Defense" . You can view the video or read the transcript is also available.
FortneyScott and DCI Consulting Group Launch DEI Risk Assessment DEI program evaluation offers privileged critical information to mitigate risk Washington, D.C.: Fortney & Scott, LLC (FortneyScott), a leading Washington, DC law firm representing and advising a broad range of employers, has partnered with DCI Consulting Group, Inc. (DCI), a Washington, D.C.-based human resources data analytics and consulting firm, to offer a comprehensive, multi-disciplined DEI Risk Assessment. Employers and their C-Suites and Boards of Directors are facing growing challenges to their Diversity, Equity, and Inclusion (DEI) programs. In response, employers are turning to Fortney Scott and DCI as outside experts to assess their legal compliance and provide advice as to best practices. As a result, we have developed a proactive, comprehensive, and attorney-client privileged DEI Risk Assessment. This DEI Risk Assessment is a crucial first step to identifying and mitigating potential legal exposure, and includes: 1. Self-Evaluation of DEI Programs & Commitments 2. Listening Sessions with Executives & DEI Leaders 3. Legal Review & Risk Assessment of Policies, Procedures and Practices 4. Scorecard & Best Practice Recommendations “Following the recent rulings by the Supreme Court in UNC and Harvard, it is clear that the legal risks for corporate DEI programs have substantially increased.” said FortneyScott Co-Founder David S. Fortney. “The critical step for employers now is to conduct an attorney-privileged assessment of their DEI programs -- that includes necessary workforce analyses and benchmarking based on best practices -- to determine how their DEI programs should be implemented going forward.” About FortneyScott FortneyScott is a Washington, DC-based law firm counseling and advising clients on the full spectrum of DEI and workplace-related matters. The firm offers clients unparalleled experience and expertise by its attorneys, who formerly held senior positions at the U.S. Department of Labor (DOL), Equal Employment Opportunity Commission (EEOC) and other government agencies, in corporate and Congressional legal staffs, in major law firms, and who served as a judge on an international tribunal. About DCI DCI Consulting Group is a human resources risk management consulting firm strategically headquartered in Washington, D.C. Members of DCI’s staff are recognized experts in a variety of spaces, including systemic compensation discrimination analyses, affirmative action plan development and implementation, pay equity analyses, DEIA metrics, employee selection and test validation, and OFCCP audit and litigation support. DCI also offers proprietary software and related support to clients. FortneyScott Media Contact: DCI Media Contact: info@fortneyscott.com news@dciconsult.com 202-689-1200 14-448-7355
