On March 7, 2019 the US Department of Labor (DOL) issued an update to their Overtime Rules that will make more than a million more American workers eligible for overtime. You can read the full notice here: Notice of Proposed Rulemaking: Overtime Update.
Here are few highlights of the new proposal:
- Salary Threshold Increase: the minimum salary required for an employee to qualify for exemption is increased from $455/week ($23,660 annually) to $679/week ($35,308 annually).
- Highly Compensated Employees: increases the total annual compensation requirement for “highly compensated employees” (HCE) from the currently-enforced level of $100,000 to $147,414 per year.
- Future Salary Updates: does not implement automatic updates, but the proposal seeks comment on conducting regularly scheduled rulemakings to update the salary threshold consistent with the methodology used in this proposal.
- Salary Test: would allow nondiscretionary bonuses and incentive payments (including commissions) paid at least annually to satisfy up to 10 percent of the standard salary test requirement.
- Job Duties Test: there are no changes proposed to the job duties test.
If you need any help better understanding these rules and how they impact your workforce, reach out and talk to one of our HR Consultants.
