March 8, 2019
Courtesy of NACS
On March 7, the U.S. Department of Labor (DOL) released its proposed update to the “white collar” exemption, also known as the overtime rule.
In 2016, the Obama Administration proposed and finalized dramatic changes to the overtime rule, which doubled the salary threshold under which all salaried employees must be paid overtime. That rule was ultimately invalidated by a federal court in Texas prior to implementation, necessitating this move by the current DOL.
The new proposal seeks to move the salary threshold from $455 per week ($23,660 annualized) to $679 per week ($35,308 annualized). This amount is slightly above adjusting the current salary threshold for inflation, roughly $33,000 annualized.