DOL Releases New Overtime Rule

WDMA
May 31, 2016
Government
Recently, the Department of Labor issued a final rule that significantly increases the number of employees eligible for overtime pay. 

The final rule states that the salary level under which employees qualify for overtime pay will increase from $455 per week ($23,360 annually) to an estimated $913 per week ($47,476 annually). The rule is effective December 1, 2016. The salary threshold will be updated automatically every three years. The new rule does not make any changes to the duties test for executive, administrative and professional employees.
 
The new rule has proven to be controversial, and lawmakers have introduced legislation in both the House of Representatives and Senate that would delay the Overtime Rule. The Protecting Workplace Advancement and Opportunity Act (H.R. 4773 and S. 2707) would suspend the changes to the eligibility criteria and require the Labor Department to conduct a comprehensive economic analysis on the impact of mandatory overtime expansion to small businesses, nonprofits, and public employers.