DOL Issues Proposed Overtime Rule

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At long last, the Department of Labor has issued a notice of proposed rule making to update overtime regulations.  The proposed rule would raise the salary threshold for exempt employees from $455 per week to $679 per week ($35,308 per year) beginning in January 2020.  You will recall, the 2016 Final Rule sought to increase the salary threshold to $913 per week.  The DOL anticipates that 1.1 million currently exempt employees will gain overtime eligibility if they do not receive a raise when the new rule goes into effect. Once the rule is published, there will be a sixty day public comment period.

More information, including extensive analysis of how the new salary amount was determined and the impact of the increase on employers of various sizes and can be found here: www.dol.gov/whd/overtime2019.

We will continue to follow developments on this issue.

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