A Million More U.S. Employees Eligible for Overtime Pay

The long-awaited U.S. Department of Labor Notice of Proposed Rulemaking was released on March 7, 2019.

The new proposal, if passed, will increase the standard salary level threshold from $455 weekly (equivalent to $23,660 annually) to $679 weekly ($35,308 annually).  Employees paid below this level would be eligible for overtime pay when working more than 40 hours per week.  Employees who earn at least this pay level may be eligible for overtime pay based on job duties.

Automatic adjustments are not included in this proposal although a commitment for periodic review would be included, subject to notice and comment rulemaking.

Other key provisions include the following:

  • There are no changes to the job duties test.
  • “Highly compensated employees” would increase from $100,000 to $147,414 per year (total annual compensation).
  • Nondiscretionary bonuses and incentive payments (including commissions) – paid at least annually – would satisfy up to 10% of the standard salary level.
  • There are no changes in overtime protections for these employees:
    • Police officers
    • Fire fighters
    • Paramedics
    • Nurses
    • Laborers, including non-management production-line employees
    • Non-management employees in maintenance, construction, and similar occupations, such as carpenters, electricians, mechanics, plumbers, iron workers, craftsmen, operating engineers, longshoremen, and construction workers

Public comments on the Proposed Rulemaking may be made electronically at https://www.regulations.gov/.

Additional information about the U.S. Department of Labor Notice of Proposed Rulemaking is available at https://www.dol.gov/whd/overtime2019/

(Docket RIN 1235-AA20).

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