New DOL Overtime Rule:
The U.S. Department of Labor (DOL) published a Proposed Rule on revising the overtime salary thresholds under the Fair Labor Standards Act (FLSA) on March 7th, 2019.
This rule proposes that employees with a salary below $455 per week ($23,660 annually) must be paid overtime if they work more than 40 hours per week.
If an employee doesn’t want to be entitled to get overtime, then he must apply for an exemption. But in case she/he wants to receive overtime then his work responsibilities and salary should be able to meet the minimum requirement. The salary should be at least $23,660 per annum to be qualified for the exemption from overtime.
DOL proposed doubling that minimum salary to more than $47,000 during the time when Obama was the President, but the proposal was rejected by a federal court in late 2016—just before the rule was to take effect.
What else was proposed?
The US DOL rejected setting multiple salary levels based on region, industry, or employer size.Hopefully, these changes will be applicable before the 2020 elections. Apart from this, employer can use nondiscretionary bonuses and incentive payments, keeping in mind that there will be n change in job role or duties.
This proposal was developed with help of public inputs taken across the country in 2017.Participants who commented in listening session agreed that they required to level up the salaries.
The proposal is yet to be released by DOL. It’s expected that the employees will have 2 months or 60 days to submit their comments after the rule is published.


Leave a Reply

Your email address will not be published. Required fields are marked *