On March 7, 2019, the United States Department of Labor issued a notice of proposed rulemaking to revise the federal overtime regulations. Specifically, the Department of Labor proposal would:
· increase the salary level to $679/week ($35,308/year) and above that threshold overtime eligibility will be based on the usual job duties test for the EAP exemption
· increase the level of compensation to qualify as a “highly compensated employee” from $100,000 to $147,414 per year
· provide for a commitment to periodic reviews to update the salary threshold following more notice-and-comment rulemaking
· allow the use of nondiscretionary bonuses and incentive payments (including commissions) that are paid at least annually to satisfy up to 10% of the standard salary level
The proposed rule would not change the job duties test and would not imposed automatic adjustments to the salary threshold. The Department of Labor estimates that more than one million Americans could be eligible for overtime under the new rule. Additionally, on March 29, 2019, the Department of Labor issued a notice of proposed rulemaking to propose clarifications to how an employee’s “regular rate of pay” is calculated for the purposes of determining their overtime rate at one-and-a-half times their regular rate.
Read More to Find Out What You Can Do to Prepare For The New Rule
Adam E. Konstas is an Attorney in PK Law’s Employment and Education Group. He represents private sector employers, local school boards, superintendents, private schools and colleges before federal and state courts, and federal and state civil rights agencies on a variety of matters, including employment discrimination litigation, teacher and student discipline, collective bargaining, and sexual harassment. Mr. Konstas can be reached at 410-339-5786 or firstname.lastname@example.org.