New Overtime Rule to Affect Almost All U.S Businesses

The U.S. Labor Department (DOL) last week proposed a new rule that if enacted will drastically change current overtime regulations. 

Under the Fair Labor Standards Act (FLSA) “covered employees”, (basically non-exempt), must be paid time-and-a-half for any hours worked more than 40 in a pay period week.

Currently, if an employee meets DOL work-related guidelines and is paid $684 a week, ($35,568) that employee can be classified as “exempt”, thereby exempt from overtime and state-mandated rest and meal break regulations.

DOL is proposing to increase this pay increase to $1059 per week ($55,068). This rate would be indexed for inflation and updated every three years. DOL is already projecting that this current year the salary threshold could be as high as $59,285.

This rule change would also include those employees with professional designations.

The proposal initiates a months-long regulatory process, including a 60-day public comment period. This rule change would certainly be challenged in court.

Sigma6 HR will be monitoring this rule change, as overtime eligibility is one of the most misunderstood regulations in employment, and one that is aggressively monitored by the DOL, as well as state wage and hour departments.

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