{"id":5616,"date":"2019-03-08T17:12:06","date_gmt":"2019-03-08T22:12:06","guid":{"rendered":"http:\/\/greatermankatoblog.com\/?p=5616"},"modified":"2024-01-04T15:16:32","modified_gmt":"2024-01-04T21:16:32","slug":"department-of-labor-proposes-new-overtime-rule","status":"publish","type":"post","link":"https:\/\/greatermankato.com\/zh\/blog\/department-of-labor-proposes-new-overtime-rule\/","title":{"rendered":"Department of Labor Proposes New Overtime Rule"},"content":{"rendered":"
The Department of Labor announced on Thursday a\u00a0proposed rule\u00a0<\/a>that would make 1.1 million American workers newly eligible to receive overtime pay beginning in 2020. The following guest blog courtesy of Blethen | Berens<\/a> provides a helpful overview of this proposal and how it will impact businesses.<\/p>\n Should you wish to discuss this issue further, please be sure to contact one of our fantastic\u00a0member businesses in law<\/a> \u6216\u8005 accounting<\/a> with employment expertise.<\/span><\/p>\n Guest Blog from Blethen | Berens<\/strong><\/p>\n Under the current federal\u00a0Fair Labor Standards Act, employees with a salary below $455 per week ($23,660 annually) must be paid overtime if they work more than 40 hours per week.\u00a0Workers making at least this salary level and whose job duties fit within an exemption are ineligible for overtime.\u00a0This salary level was set in 2004.<\/p>\n Previously, under the Obama administration, the rule was changed to increase the salary level to $922 per week (about $47,000 annually).\u00a0This new rule was met with a lot of concern by employers due to the significant increase in the salary level, and additional increases thereafter.\u00a0That rule was enjoined by a U.S. District Court in November 2016 and the appeal has not moved forward, with the expectation that the Department would propose a new rule with a revised salary threshold.<\/p>\n Yesterday, the U.S. Department of Labor\u00a0(\u201cDOL\u201d) announced a Notice of Proposed Rulemaking regarding this much-anticipated issue.\u00a0This new proposed rule would update the salary threshold from $455 to $679 per week (equivalent to $35,308 per year). Under the proposed rule, employers are allowed to use nondiscretionary bonuses and incentive payments (including commissions) that are paid annually or more frequently to satisfy up to 10 percent of the salary level. For the highly compensated employee exemption, the annual salary increases from $100,000 to $147,414 per year.\u00a0The new rule does not provide for automatic adjustments to the salary threshold, as the 2016 rule did, but does indicate a commitment to\u00a0periodically review the salary threshold.\u00a0The new rule also does not make any changes to the job duties test.<\/p>\n So, what is next?<\/p>\n