Last week, 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. This would be the first such update to the salary threshold since 2004.
On March 7, 2019, the DOL announced a Notice of Proposed Rulemaking (NPRM) to update the salary threshold from $23,660.00 annually to $35,308.00 annually. In other words, 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 DOL’s proposal. Importantly, 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. Furthermore, the proposed rule does not establish automatic, periodic increases of the salary threshold. Instead, the DOL is soliciting comments form the public regarding how the DOL should update overtime requirements every four years. The DOL released these details on its website ahead of the Federal Register’s expected publication of the regulation next week.
The DOL is asking for public comment on the NPRM’s language. Once the rule is published in the Federal Register, the public will be able to submit comments for 60 days in order for those comments to be considered. 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. We will keep you updated if and when any new developments arise.