You May Be Eligible for Overtime Soon
In 2016, the big topic in employment law involved proposed changes to the Fair Labor Standards Act (“FLSA”) overtime rules. Although there were several key changes, the one that got the most media attention was raising the minimum salary threshold from $23,660 to $47,476. Employees and their advocates loved the change. Employers fought the changes and eventually got a win in court.
New Overtime Rule
Recently, the U.S. Department of Labor (“DOL”), announced a new overtime rule that provided updates focused on the same things as the 2016 rule. However, the new rule proposes changes on a smaller scale. Most importantly, this includes increasing the minimum salary threshold from $23,660 to $35,568. The changes would make 1.3 million employees eligible for overtime.
When Does the Rule Change?
This change would be the first since 2004. For perspective, the average rent in the U.S. in 2004 was around $900, while in 2017 it was close to $1,500. The rule does not go into effect until January 1, 2020, which gives employers time to yet again challenge the changes. However, because of the relatively smaller changes, I do not expect that to be the case.DOL Proposes Changes to Overtime Rules (Again)Click To Tweet