March 8, 2019
On March 7, 2019, the Department of Labor released an Overtime Update Proposal. The current threshold for overtime is $455 per week (or $23,660 annually), and employees with salaries lower than this threshold must be paid overtime if they work more than 40 hours per week.
Under the Overtime Update Proposal, the DOL would increase the salary threshold from the current $455 to $679 per week (or $35,308 annually).
The proposal also includes updates to the salary threshold for determination of HCE (highly-compensated employee) status and the application of nondiscretionary bonuses and incentive payments towards meeting certain salary thresholds.
The current threshold rate was established in 2004; you may recall that there was a rule change proposed in 2016, but it was held in abeyance in 2017 by the U.S. Court of Appeals for the Fifth Circuit, and the 2004 rate has continued to be the standard in the interim period. The Department of Labor’s new proposed rule change is anticipated to become effective January 1, 2020.
For more information, please contact us or visit: httpss://www.dol.gov/whd/overtime/FSOT2019.pdf.
We will be addressing this topic during our upcoming April 4, 2019 seminar – Strategies for Handling Safety Service Personnel Issues in the Public Sector. Please visit our Events page at https://www.clemansnelson.com/events/strategies-for-safety-service/ for information on how to register.
