Late March 7, 2019, the Department of Labor (DOL) issued a proposed new overtime rule, increasing the salary-level threshold for qualified exempt employees from $23,660 to $35,308 per year.
According to the Society for Human Resource Management, “Employers should note that the DOL’s $35,308 threshold is just a proposal and must go through the formal rulemaking process, which includes a comment period. Employers—and other interested members of the public—that wish to comment on the proposal may do so by visiting www.regulations.gov. They will have 60 days to comment from the time the rule is published in the Federal Register. For now, the FLSA salary threshold is still $23,660 for the white-collar exemptions.” The DOL anticipates that the final rule will be effective January 2020.
There is no action needed at the moment, but the “Overtime Rule” should be on your radar. At some point this year, you will need to evaluate your current exempt employees to determine if they meet the salary AND job duties requirements.