TAKE TWO!!  USDOL Releases Proposed Overtime Rules

Many of you will remember the U.S. Department of Labor released their first attempt at revision to the Overtime Rules in May of 2016, however, days before the implementation a judge blocked the rules from taking effect.   In preparation for the impending implementation many of you did work to determine the impact to your organization, made plans, and in some cases, implemented the work.

Pull out those spreadsheets!  A new set of proposed rules has been released.  In overview this is what we find:

  • The minimum salary threshold would be raised from $455 to $679 per week ($35,308 per year, annualized).
  • The rule maintains one threshold regardless of exemption, industry, or locality, subject to a few exceptions that already exist.
  • The highly compensated employee exemption has a proposed entry level of $147,414 per year.

We are pleased to say that no changes were proposed to the duties tests for the exemptions and no “automatic” updates were proposed.

Please remember these are proposed rules.  While it is important that you begin the processes to determine impact and make plans for implementation, you may want to stop short of implementing until the rules require you to make a change.

For Oregon Employers:  You will also want to watch 2019 House Bill 3374 which is attempting to set an Oregon specific salary threshold.

We will be collecting comments for submission to U.S. DOL.  Please send your thoughts to Info@hranswers.com no later than April 12th.  This will allow for time to compile and submit comments within the 60-day window.

As always, please contact us if we can be of assistance with this or any other HR question.