Friday, March 8, 2019

DOL's new proposed overtime regulations are here!

We knew they were coming, and now they're here - The U.S. Department of Labor's updated proposal for new overtime regulations: Press release | Proposed rule.

The headliner:
Not official use. 
  • To qualify for the white collar exemptions (administrative, executive, and learned professional) from the FLSA's overtime pay requirement, employees must still perform the applicable primary duties and be paid on a salary basis - but, now they must receive at least $679/week ($35,308), instead of the current minimum of $455/week ($23,660). 
Also of interest:
  • The minimum salary requirement for highly compensated employees ("HCEs") will increase from $100,000 to $147,414 per year;
  • "Nondiscretionary bonuses and incentive payments (including commissions) that are paid annually or more frequently" may satisfy up to 10% of the minimum salary requirement for the exemptions; 
  • No changes to the job duties requirements (which is somewhat surprising, at least to me); and
  • No automatic adjustments to the salary threshold - but, the Department recommends reviewing the salary thresholds for the white collar exemptions and HCEs every four years (using the notice and comment rulemaking process).
Please note that this is not the final rule, so we may still see some tinkering. That said, I suspect this is pretty close to what will actually be implemented. 

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