On March 7, 2019, the Department of Labor (DOL) announced new proposed revisions to the Overtime Rule. This is not the first time in recent years revisions have been proposed to the so-called "white collar exemptions" contained in the Fair Labor Standards Act. In 2016, the Obama administration proposed to nearly double the salary threshold for white collar exemptions. That proposal was enjoined by a federal court, blocking its enactment. With the election of Trump, it became clear the proposal would never become law.
The current proposal would, if adopted, increase the minimum salary that must be paid in order to qualify for the white collar exemptions from the current minimum salary threshold of $23,660 to $35,308 per year (from $455 to $679 per week).
It is important to note
this proposal does not immediately (or automatically) take effect. Instead, the proposal will go through the administrative rule making process, which includes a 60-day period for public comment. It is possible, however, that the proposed rule could become a final rule prior to the 2020 election cycle.
In addition to changes to the salary threshold, the DOL also seeks comment on language for periodic review to update the salary threshold.
The DOL press release on its proposed rule is available
here, and the proposed rule and request for comments are available
here.
If you have questions about how this proposed rule affects your business, reach out to a member of
Spilman's Labor & Employment Team or:
