DOL Releases Proposed Overtime Rule 2.0

We have awaited to see where the U.S. Department of Labor would land with its much anticipated revised “overtime rule” and late yesterday the agency delivered. The USDOL released its long-awaited proposed rule which, if adopted, would set the minimum salary threshold at $679 per week, or $35,308 per year. For now, the proposed rule does not include an automatic update provision (which many were concerned would simply serve to periodically inflate the threshold level), nor does it revise the duties test that accompanies the rule.

Once published in the Federal Register, the public will have 60 days to submit comments regarding, among other things, the proposed minimum salary threshold. 

Proposed Rule In A Nutshell

• The proposed minimum salary threshold would be raised from $455 to $679 per week ($35,308 per year, annualized).
• The proposed rule provides for one threshold regardless of exemption, industry, or locality, subject to a few exceptions that already exist.
• The additional total annual compensation requirement for the highly compensated employee exemption has a proposed entry level of $147,414 per year.
• No changes were proposed to the duties tests for the exemptions.
• No “automatic” updates were proposed.
• The unnecessary 90/10 approach with respect to certain non-discretionary pay has been teed up again.