Labor Department Proposes New Federal Overtime Salary Threshold

The Department of Labor (DOL) has proposed an increase to the Fair Labor Standards Act’s (FLSA’s) annual salary-level threshold to $55,068 from $35,568 for white-collar exemptions to overtime requirements. The department also is proposing automatic increases every three years to the overtime threshold.

“As we celebrate our 75th year, the cornerstone of our advocacy is modernization of workforce policies. Modernization must be reasonable, flexible and provide some certainty to HR professionals who oversee compliance of these rules,” said SHRM Chief of Staff and Head of Public Affairs Emily M. Dickens. “We are pleased to see that the proposed revisions have adopted a single standard that includes all 50 states and U.S. territories—except for American Samoa.”  

Dickens added, “We hope that following a robust public comment period, reasonableness, flexibility and certainty will guide other facets of the rule still needing improvement, including the salary threshold and automated updates. We’re excited to share the input of our members who can provide real-life examples of the needs of today’s workforce, including industry, geographic and small employer considerations.” 

The proposed rule would, according to the DOL, do the following:

• Restore and extend overtime protections to low-paid salaried workers. Many of these employees work side by side with hourly employees, doing the same tasks and often working over 40 hours a week.
• Automatically update the salary…