On March 7th, the Department of Labor released a new rule to increase the exempt salary level threshold for overtime. This is the first proposed change since a federal court blocked an Obama-era rule in 2016. The proposed rule would rescind the 2016 increase and set the threshold at $35,308.00. The potential effective date is January 1, 2020.
The salary level (one part of a three prong test to determine if a position is exempt from overtime) has remained at $23,660.00 since 2004.
The public is again invited to give input for the next 60 days. If you wish to contact the DOL and read the full release, please click here.
If you’d like more information regarding how to determine exempt/nonexempt status for positions in your organization or you have any other HR questions, please contact HR Services at (800) 358-2163 or HRServices@501c.com.