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DOL publishes new overtime rule

The Office of the Federal Register last week published the US Department of Labor’s Notice of Proposed Rulemaking that would make more employees who work in an “executive, administrative and professional” capacity eligible for overtime.

The US Department of Labor’s Wage and Hour Division proposed the new rule earlier this month [1]. It would make more than a million more American workers eligible for overtime under the Fair Labor Standards Act, according to the department.

Under the new rule, workers making up to $679 per week, or $35,308 per year, would automatically be eligible for overtime if they work more than 40 hours per week. Above this salary level, eligibility for overtime varies based on job duties. The level under the present rule is up to $455 per week, or $23,660 per year.

The new rule also raises the total annual compensation requirement for a worker to be considered a “highly compensated employee” and exempt from overtime. The new level would be $147,414 per year, up from $100,000 per year.

Fiona Coombe, director of legal and regulatory research for SIA, discussed the rule and its effect on employers in a prior CWS 3.0 article [1].

The official publication in the Federal Register marks the start of the proposal’s public comment period. Comments must be received by May 21 to be considered. Members of the public may submit comments about the proposed rule electronically at www.regulations.gov [2] in the rulemaking docket RIN 1235-AA20.

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