The U.S. Department of Labor (“DOL”) advised today that it is putting forward a rule to raise the salary threshold under which employees are eligible for overtime pay under federal labor law.
A proposed DOL rule would raise to about $55,000 per year the salary threshold under which employees are eligible for overtime
The proposed rule defines exemptions for executive, administrative, professional, outside sales and computer employees. The DOL plans would raise the threshold under the Fair Labor Standards Act to $1,059 per week, about $55,068 per year. The current rate is $684 a week, which would be $35,568 a year.
The salary threshold for highly compensated employees under the proposal would be $143,988. That is up from the current $107,432.
Besides raising the salary threshold, the proposed rule would automatically update that ceiling every three years based on current earnings data.
The proposed new standard salary threshold is pegged to the 35th percentile of weekly earnings of full-time salaried workers in the Southern U.S.
The changes would restore and extend overtime protections to 3.6 million workers, according to the DOL.
Acting Labor Secretary Julie Su said in a statement Wednesday that the proposed rule “would help restore workers’ economic security by giving millions more salaried workers the right to overtime protections if they earn less than $55,000 a year.”
“Public input is essential as we consider the needs of today’s workforce and industry demands, and we encourage continued stakeholder input during the public comment period,” Jessica Looman, principal deputy administrator of the DOL’s Wage and Hour Division, said in a statement Wednesday.