The DOL announced a Notice of Proposed Rulemaking on March 7, under which employees would have to earn at least $679 a week ($35,308 a year) in order to be exempt from overtime pay for any hours worked over 40 in a workweek. That’s up from the current $455 a week ($23,660 a year) but far below the weekly salary of $913 ($47,476 a year) in the DOL rule finalized in 2016, but struck down by a federal judge in Texas a few weeks before it was to take effect.
As we reported in May, this DOL plan was met with a far more favorable reaction than the 2016 version.
Although the DOL’s new plan changes the “salary test” for overtime exemption, it makes no change to the “duties test” that also is used to determine overtime eligibility. To be exempt from the overtime pay requirement, employees must earn more than the overtime salary threshold and perform work that is classified as executive, administrative, or professional in nature.
According to Bloomberg, the DOL is sending the final draft to the White House Office of Information and Regulatory Affairs.
Please watch this space for further developments.