Federal Overtime Regulations May Change Soon

March 28, 2019

The U.S. Department of Labor recently released its proposed changes to federal overtime regulations. The new plan would allow employees making less than $35,308 a year to be automatically eligible for overtime pay. The employee would earn one and half times their regular pay for any time worked over 40 hours per week. The Department of Labor made a similar proposal in 2016 which would have increased the salary threshold to $47,476 with an automatic increase every three years, but was halted by a nationwide injunction by a Texas federal court. Though the injunction of the 2016 proposal waits on appeal, it would be rescinded should this new plan prove to be successful.

The 2019 plan does not include an automatic increase provision, which was one of the most criticized aspects of the 2016 proposal. Additionally, employees that earn at least $35,308 may be exempt from overtime pay based on a job duties test, such as those that sit in executive, administrative, professional, or outside sales positions. As it currently sits in the negotiation process, the final threshold could be higher or lower than the current number, making it important for employers to keep a close eye on the proposal’s progress. For more information regarding the federal overtime regulations and how it will affect your business, contact the attorneys at Rock Fusco & Connelly, LLC