DOL has released a comprehensive set of changes, summarized below:
On November 7, 2023, CUPA-HR submitted comments in response to DOL's September 8 proposed rule. With the comment period now closed, DOL must review all comments submitted in response to the proposed rule prior to issuing a final rule to implement the changes to the minimum salary threshold requirements.
On March 1, 2024, the Department of Labor sent the highly anticipated final rule to update FLSA overtime regulations to the Office of Information and Regulatory Affairs for review. This is a required step in the regulatory process and acts as one of the last steps prior to releasing the text of the regulation to the public. While OIRA has 90 days to conduct its review, in most cases, the review takes 30 to 60 days. This means the final rule could be released as early as the end of March or in April. CUPA-HR will keep members apprised of any updates on when a final rule will be published and when the rule will go into effect.
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Changes to overtime pay requirements have been implemented through regulations under both the Obama and Trump administrations. In May 2016, the Obama administration’s DOL issued a final rule increasing the salary threshold from $23,660 to $47,476 per year and imposed automatic updates to the threshold every three years. However, court challenges prevented the rule from taking effect, and it was permanently enjoined in September 2017. After the Trump administration started the rulemaking process anew, the DOL issued a new final rule in September 2019 raising the minimum salary level required for exemption from $23,660 annually to $35,568 annually. This final rule went into effect January 1, 2020, and remains in effect today.
For HR practitioners navigating the new proposal, resources associated with the 2019 final rule can offer valuable insights. Understanding past changes can equip professionals with a broader perspective and aid in anticipating challenges and opportunities presented by the latest DOL proposal.
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