United States Department of Labor
New (Proposed) Overtime Regulations
Some of you may remember that in May of 2016, under the Obama
administration, the U.S. Department of Labor (DOL) issued proposed
revisions to the overtime regulations. The biggest change for
employers was that the minimum salary threshold to meet the salary
level test of the Fair Labor Standards Act (FLSA) would increase
from the present $23,660.00/year to $47,476.00/year. The new
minimum threshold was scheduled to go into effect on December
1, 2016. However, just days before it was scheduled to go into
effect, a federal judge in Texas blocked the new rule.
Today, March 8, 2019, the DOL announced a Notice of Proposed
Rulemaking which would make more than one million more American
workers eligible to be paid overtime whenever they work more
than 40 hours within a one week period of time. The new proposal
would boost the minimum salary level from the present $23,660.00/year
to $35,308/year ($679.00 per week).
In developing the proposal, the DOL received extensive public
input from six (6) in-person listening sessions which were held
around the country as well as more than 200,000 individual comments.
Once it is published in the Federal Register, the public will
have a 60 day comment period prior to taking effect.
Employers should immediately begin the process of determining
who in the organization is presently classified as Exempt from
being paid overtime and whether or not those individuals will
need to have a salary increase in order to meet the new minimum
A company’s best defense against
the potential expense and aggravation related to federal or state
law violations is to proactively review and revise as needed
all Human Resources policies, handbooks, hiring procedures, compensation,
benefits, training programs, communications tools and other functions.
The professionals of PHHR are ready to assist your organization
with this type of training as well as to maintain compliance
with the latest state and federal mandates.
Paul Hilton Human Resources Consulting works with our clients to insure that all required documentation is correct and sufficient to successfully defend against a claim to any unemployment compensation commission.
|For assistance with any Human Resources related questions or other
issues, please Contact Us.
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