Overtime Rule

The US Department of Labor released its proposed rule updating the overtime salary threshold under the federal Fair Labor Standards Act (FLSA). The proposed rule raises the salary threshold for the white-collar exemption from overtime pay to $35,000 per year. At issue is the provision of the FLSA that exempts certain employees from the requirement that they receive time and a half overtime pay for work beyond 40 hours in a week. The salary threshold is one of three tests that must be met before an employee can be deemed exempt; each exempt employee must (1) be paid on a salary basis; (2) be paid at least the salary threshold set forth by DOL; and (3) satisfy a duties test as being an executive, administrative or professional worker. The Labor Department is inviting public comments (RIN 1235-AA20) through May 13.

Post date: March 25, 2019
Topics: National News

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