CareersThe U.S. Department of Labor (DOL) has proposed a new rule that would increase the salary threshold for overtime eligibility under the Fair Labor Standards Act (FLSA), currently $35,568/year ($684/week) to $55,068 per year ($1,059/week). According to the DOL, the department’s proposed salary level would mean that millions of salaried workers who do not currently qualify for overtime pay would receive overtime protections traditionally provided by the department’s rules.
Many will recall that the current weekly salary rate for OT exempt employees has only been in place for 3.5 years. The salary threshold for overtime eligibility was only last revised effective January 1, 2020, raising the weekly salary threshold level from $455 per week ($23,660 per year, which had been in place since 2004) to the current $684 per week ($35,568 per year).
The DOL’s proposed rule is still in the early stages, and it is not clear when it will be finalized. The DOL is accepting public comments on the proposed rule until October 24, 2023. In addition to increasing the salary threshold, the DOL’s proposed rule would also make other changes to the FLSA’s overtime regulations. For example, the rule would establish automatic increases to the weekly salary threshold for OT every three years to reflect changes in the cost of living. The proposed rule also alters the job duties tests that must be met for a worker to be classified as exempt from overtime pay.
If you have questions about the proposed rule, please contact the Walter Haverfield Labor and Employment Services Group.
Jessica L. MacKeigan is senior counsel at Walter Haverfield who frequently represents employers in labor law and employment matters. She can be reached at jmackeigan@walterhav.com or 216.928.2928.
Marc J. Bloch is a partner in the Labor and Employment Services Group of the Ohio-based law firm of Walter Haverfield. He can be reached at mbloch@walterhav.com or 216.928.2915.