DOL Proposes New Overtime Pay Requirements

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The U.S. Department of Labor (DOL) has proposed a new rule to make more workers eligible for overtime pay.  Under the proposal, workers earning less than $679 per week ($35,308 annually) would automatically be eligible for time-and-½ their regular rate for all hours worked over 40 in the workweek.  The current salary level threshold is $455 per week ($23,660 annually).   The Obama administration had proposed a salary threshold of just over $47,000 annually, however, that rule was blocked by a federal court from taking effect.

The DOL is seeking public comment on how they might update the salary level threshold every four years, a shift from the controversial provision in the Obama administration proposal to increase the salary automatically every year in line with the Consumer Price Index.  

No changes have been proposed in relation to the ‘duties test.’