Proposed Federal Overtime Rule

The Department of Labor's new proposal regarding overtime

The Department of Labor's new proposal regarding overtime


Under the Fair Labor Standards Act, workers must be paid 1.5 times their regular rate of pay for hours worked beyond 40 in a workweek, unless they fall under an exemption. In addition to meeting certain duties tests (i.e. job responsibilities), workers must earn a minimum salary to qualify for the white-collar exemptions. The current $23,660 threshold was last updated in 2004.

Various Employers believe that the marketplace —rather than the federal government—should dictate appropriate salary levels. These employers might be pleased that the DOL's current proposal does not call for automatic adjustments to the salary.

For now, the DOL will continue to enforce the $23,660 salary level, as the proposed rule must go through the formal rulemaking process, which includes a notice-and-comment period.

The DOL intends to propose salary-threshold updates every four years. "This would provide clarity and help workers and employers by having a regular and orderly process for future changes," according to the proposed rule.

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