On March 7, 2019, the U.S. Department of Labor issued a proposed rule that would change the salary thresholds for certain exempt employees under the Fair Labor Standards Act overtime rules.

The Department of Labor has proposed raising the salary level for exempt employees from $23,600 to $35,308. Employees earning less than $35,308 annually, or $679 per week, would be classified as non-exempt and would be eligible for overtime pay for any hours worked over 40 in a workweek. Employers will be allowed to use non-discretionary bonuses and incentive payments, including commissions, that are paid at least annually to satisfy up to 10% of the salary test. 

No changes to the job duties test were made. No automatic adjustments to the salary level were made.

This proposal is currently pending publication from the Office of Federal Register. Once it has been published in the Federal Register, the public will have 60 days to comment on the proposed regulations.

Notice of Proposed Rulemaking: Overtime Update

Now may be a perfect opportunity to audit the exempt status of your jobs even for employees who earn enough to not be impacted by the new regulations since it provides an opportunity to fix current errors.

Shafer HR Solutions can perform the job duties audit and make cost effective recommendations. Contact Catherine Barnes at 865.292.1136 or cbarnes@shaferinsurance.com.

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