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Closely Examine Overtime Ramifications for Exempt Positions Earning Less than $60K | Leah Shepherd

​In response to the U.S. Department of Labor’s (DOL’s) proposed overtime rule, employers should look carefully at any exempt positions earning less than $60,000 per year, said Kevin Young, an attorney with Seyfarth in Atlanta, to attendees of a SHRM Government Affairs webcast on Sept. 6. 

If the rule is finalized and implemented, overtime protections would be extended to approximately 3.6 million more workers under the Fair Labor Standards Act (FLSA), according to the DOL.

The proposed rule would:

  • Increase the salary threshold from $684 per week ($35,568 annually for a full-year worker) to $1,059 per week ($55,068 annually for a full-year worker). The increase reflects the 35th percentile of weekly earnings of full-time salaried workers in the lowest-wage census region (currently the South).
  • Increase the salary threshold for highly compensated employees from $107,432 annually to $143,988 annually. The increase reflects the earnings of the 85th percentile of full-time salaried workers nationally.
  • Implement automatic increases every three years to all salary thresholds.

The final rule’s salary threshold will be based on the most recent data available at the time the final rule is issued—most likely 2023 numbers. The proposed rule suggests the actual threshold could end up being higher than $55,068—possibly as high as $60,000. “I could see the DOL getting a lot of pushback on that” and falling back to 2022 numbers, Young said.

Ten percent of the minimum salary can be met…

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