Following months of extensive consultations with
employers, workers, unions, and other stakeholders, on July 6th the Department
of Labor released its proposal to update and revise regulations to extend
overtime pay to nearly 5 million workers. As proposed, the rule would guarantee
overtime pay to most salaried white collar workers earning less than an
estimated $50,440 next year.
Key provisions of the proposed rule include:
Raising the threshold under which most salaried white
collar workers are guaranteed overtime to equal the 40th percentile of weekly
earnings for full-time salaried workers. As proposed, this would raise
the salary threshold from $455 a week ($23,660 a year) to a projected level of
$970 a week ($50,440 a year) in 2016.
Providing greater clarity for millions more workers so
they – and their employers – can determine more easily if they should be
receiving overtime pay.
Preventing a future erosion of overtime protection and
ensuring greater predictability by automatically updating the salary threshold
based on inflation or wage growth over time.
The Notice of Proposed Rulemaking also discusses the
current duties test to qualify for the exemption, and requests comments on the
current requirements. We also seek comment on the possibility of
including nondiscretionary bonuses to satisfy a portion of the standard salary
requirement.
Read more on WHD’s Overtime NPRM webpage. You can read the NPRM in
its entirety here.
The comment period on the proposed rule is open through
September 4, 2015. We encourage you to submit your written comments on
the Regulations.gov website here.
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