Source: Tom Johnston, MEATINGPLACE 3/8/19



The U.S. Department of Labor announced on Thursday a notice of proposed rulemaking that would raise the minimum salary for employees to qualify for overtime to $35,308 per year.

Current law requires employees with a salary below $455 per week ($23,660 annually) to be paid overtime if they work more than 40 hours per week. Workers making at least this salary level, which was established in 2004, may be eligible for overtime based on their job duties. 

This new proposal would update the salary threshold using current wage data, projected to Jan. 1, 2020, upping the standard salary level from $455 to $679 per week ($35,308 per year). This plan would make more than 1 million more U.S. workers eligible for overtime.

DOL is asking for public comment on the notice language for periodic review to update the salary threshold. An update would continue to require notice-and-comment rulemaking.

A 2016 final rule to change the overtime thresholds was enjoined by the U.S. District Court for the Eastern District of Texas on Nov. 22, 2016. As of Nov. 6, 2017, the U.S. Court of Appeals for the Fifth Circuit has held an appeal in abeyance pending further rulemaking regarding a revised salary threshold. As the 2016 final rule was enjoined, the DOL has consistently enforced the 2004 level throughout the last 15 years.

The public can submit comments about the proposed rule electronically at www.regulations.gov in the rulemaking docket RIN 1235-AA20. Once the rule is published in the Federal Register, the public will have 60 days to submit comments for those comments to be considered.

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