The U.S. Department of Labor (DOL) is planning to propose a new rule in October increasing the salary threshold for employees to be exempt from overtime, but it likely won’t be as high as the $47,000 threshold that was invalidated last year.
As the news website HR Dive recently reported, the issue is part of the department’s fall regulatory agenda.
“DOL has not made its intentions for the new rule public, but did offer some hints in the RFI, asking stakeholders how it should set a new threshold, or whether it should do away with the threshold altogether. If DOL does continue the practice of using a threshold, many expect it to be between $32,000 and $35,000.”
Currently, employees must be paid a salary of at least $23,660 ($455 per week) to be exempt from overtime rules. Otherwise, federal law requires they be paid 1-½ times their hourly rate for each hour over 40 they work in a week.