Payroll Briefs

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U.S. Department of Labor Proposes Revision to Overtime Regulations

April 1, 2019

The U.S. Department of Labor recently recently announced a proposed rule to revise federal overtime regulations that would make more than a million new Americans eligible for overtime.

Currently, employees with a salary below $455 per week ($23,660 annually) must be paid overtime if they work over 40 hours per week. This proposal would boost the standard salary level to $679 per week ($35,305 annually). Employees earning more than this salary level may be eligible for overtime, depending on their job duties.

The proposal also increases the annual compensation requirement for “highly trained employees” from $100,000 to $147,414.

Additionally, if passed the proposed regulation guarantees periodic reviews to update the salary threshold, which hasn’t been updated since 2004. It also will allow employers to use nondiscretionary bonuses and incentive payments paid annually or more frequently to satisfy up to 10 percent of the standard salary level.

The public is now able to submit comments here on this proposal for a 60-day period ending on May 21, 2019.

Employers should continue to comply with the current federal overtime regulations and consider all applicable state overtime requirements that may exceed federal levels.

Stay tuned! DM Payroll Services will keep you up-to-date if new overtime rules are put into place.