The Federal Overtime Rule is Not Dead

By May 21, 2018May 29th, 2018Newsletter

We have heard through the grapevine from our friends at Littler that an update to the Federal Overtime Rule is on its way. Don’t expect it anytime soon, however.

The Department of Labor (DOL) is likely to issue a Notice of Proposed Rulemaking sometime in January 2019. That means there will be an opportunity like the last go around, to make comments and give input into the proposed increase to the exempt salary level. Tammy McCutchen, an attorney with Littler in Washington, D.C., was quoted as saying, “I am hoping that the DOL will meet that date so we can see a final rule early in 2020.”

Many feel the former rule that was to go into effect in December of 2016 was reviewed too quickly. The $47,476 minimum salary level was said by some to be too high and the impact too much for many organizations across the country. The new minimum is very likely to be less than $40,000 per year. Some speculate it will land between $33,000 – $35,000.

As we hear and know more about the upcoming increase in the exempt salary level, we will let you know. If you have questions regarding who qualifies as exempt or what the minimum salary level is in your state, or any other HR related issue, please don’t hesitate to contact us. (800) 358-2163 or hrservices@501c.com.

 

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