Department of Labor Proposes New Changes to Overtime Pay

Posted by: Chris

In 2016, the Department of Labor (DOL) proposed changing the overtime rule by adjusting the minimum salary level to $47,476.  However, opposing parties stopped this change from going into effect just days before it was set to do so. Now, the DOL is attempting to revise the rules governing overtime pay once more. 

The Overtime Rule

The current rule states that certain executive, administrative, and professional employees do not qualify for overtime pay. According to the existing rule, an employee is exempt from overtime pay if he or she:

  • Earns a salary, and
  • Earns more than the minimum salary level, and
  • Performs duties that meet certain criteria established by law.

These three requirements are known as the salary basis test, salary level test, and duties test, respectively. If an employee passes all three of these tests, he or she is not eligible for overtime pay. If an employee does not pass one of these tests, he or she is entitled to overtime pay even if he or she passes the remaining two tests.

Proposed Changes to Overtime Pay

The DOL’s proposal would change the salary level test, but the salary basis test and duties test would remain the same. If approved, the proposed rule would raise the minimum salary level from $455 per week ($23,660 per year) to $679 per week ($35,308 per year). 

This means that an employee would be entitled to overtime pay if he or she:

  • Earns a salary, and
  • Makes more than $679 per week or $35,308 per year, and
  • Performs duties that meet certain criteria established by law.

If this rule takes effect, it could be a huge win for hard-working people across the country. In fact, it’s estimated that around one million more workers in the U.S. would qualify for overtime pay under the proposed rule. 

What Happens Next?

The DOL has asked the public to submit their feedback on the proposed changes from now until the rule takes effect. As of now, the DOL plans on making the change official on May 21st, however it’s possible that opposing parties could take legal action to prevent changes from going into effect. Until this matter is settled, the existing overtime pay rule will remain in effect.

Is your right to overtime pay being violated?  If so, seek legal representation from the experienced labor law attorneys at Armstrong & Vaught, P.L.C. We will aggressively fight to protect your rights and recover the compensation you deserve for your work. Call us now at 918-582-2500, toll free at (800) 722-8880, or contact us online for a free consultation with a skilled attorney.