The U.S. Department of Labor has proposed new rules relating to the employees’ exemption from overtime eligibility.
This proposal would revise the overtime rules in the Fair Labor Standards Act to increase the overtime salary exemption level from $455 per week ($23,660 annually) to $679 per week or $35,308 annual salary. The target effective date for this rule is January 1, 2020.
This proposal includes raising the annual compensation requirement for “highly compensated employees” from current level of $100,000 to $147,414 per year.
There would also be a commitment to periodically review these salary thresholds, which would still require the notice-and-comment rule making procedure.
Employees would be allowed to use nondiscretionary bonuses and incentive payments, including commissions that are paid at least annually to satisfy up to 10% of the standard salary level.
However, this proposal does NOT include any change in the overtime protections for:
Also, there are no proposed changes in the job duties test, and no proposed automatic adjustments in the salary thresholds.
If you are interested in registering an official comment on the new proposed rule, please let us know and we can assist you in the process. We are also happy to address any questions you may have. Please contact us at 715-845-1805.