Proposed Change to Overtime Rules

Non-exempt employees must be paid overtime if they work more than 40 hours in a workweek. The DOL proposal would increase the minimum salary threshold for executive, administrative, and professional employees (“EAPs”) and for highly-compensated employees (“HCEs”). The proposal would increase the current salary threshold of $684/week ($35,568 annually) set in 2019 to $1,059/week ($55,068 annually). It would boost the annual compensation requirement for overtime exempt HCEs to $145,988 from the current $107,432. The proposal would also include an automatic updating mechanism to increase the thresholds every 3 years. #IdeaoftheDay