Department of Labor Overtime Update

Earlier this year, the D.O.L. announced a new proposed overtime rule that would make many more people qualify for overtime by reclassifying salary levels of certain employees. This proposal would increase the proposed standard salary level to $679 per week (equivalent to $35,308 per year). This is just a proposal and not final. 

You can also read more about it here: https://www.shrm.org/resourcesandtools/legal-and-compliance/employment-law/pages/new-flsa-overtime-rule-proposal-expands-worker-coverage.aspx

When this issue came up before (raising the salary level to meet certain exemptions), some employers opted to increase salaries for various positions to keep the exemptions as it may have been less expensive than consistently paying overtime. Contrastingly, sometimes it might make sense to pay overtime for employees versus raising the salary levels (for instance when employees frequently do not work more than 40 hours a week). 

Although there has yet to be a final rule, it may be important for businesses to start reviewing their job positions again to determine how many employees, if any, will be eligible for overtime so that they may be prepared to act accordingly. Don't hesitate to contact us for help on discussing this new proposed overtime rule, related strategies, and how it could impact your business:  (512)-481-9292.