Earlier this month, we reported that the United States Department of Labor (DOL) was reportedly set to propose a new regulation that would update time-and-a-half pay requirements for all hours worked beyond 40 hours a week. The Department’s proposed rule would raise the currently-enforced salary threshold, thus extending overtime protection to more workers.
On March 7, 2019, the DOL issued a draft Notice of Proposed Rulemaking (NPRM) to update the salary threshold for overtime exemption from $23,660.00 annually to $35,308.00 annually. On March 22, 2019, the DOL formally published the NPRM in the Federal Register. As expected, workers who make less than about $35,308.00 per year would be automatically eligible for time-and-a-half pay for all hours worked beyond 40 a week under the proposed rule. The total annual compensation requirement for highly-compensated employees would also increase from $100,000.00 to $147,414.00 under the proposed rule. The proposed rule does not modify the “duties test,” a test used to determine whether workers who make more than the salary threshold are entitled to overtime wages.
The official publication of the NPRM in the Federal Register marks the start of the proposal’s public comment period, which will remain open for 60 days and close on May 21, 2019. The DOL encourages any interested members of the public to submit comments about the proposed rule electronically at www.regulations.gov, in the rulemaking docket RIN 1235-AA20. Comments must be received by May 21, 2019 to be considered. We will keep you updated if and when any new developments arise.