DOL Announces Proposed Rulemaking on Overtime Exemptions

With the current salary exemptions for employees who are either supervisory or possess specialized skills sitting at $455 a week or over $23,660 a year, an update to the overtime regulations seems well overdue.  The Obama-era DOL attempted to increase the overtime minimums to $913 a week or $47,476 annually, but that proposed regulation was shot down by a Texas federal judge.  Now, the Secretary of Labor has hinted at increasing the minimum salary amounts in order for employees to be overtime-exempt.

While we can’t be certain what the minimum salary amounts may be increased to, employers should start preparing for increases to the minimum exempt salary amount.  The minimums most likely won’t jump to the level of the aggressive Obama DOL, but they could go up enough that employers will either have to raise salaries, restructure schedules, or prepare to pay more overtime.

Rulemaking is scheduled for March.  It is a lengthy process, and you may wish to consult with any employer organization of which you are member to see if they will be submitting comments.  As for now, the best things you can do are watch, wait, and prepare for any changes.

If you or your organization need guidance on staying ahead of any changes to overtime regulations, contact the Wiley Law Office for advice that works.