Key Issues

Department of Labor Proposes New Overtime Rule

March 8, 2019 (WASHINGTON INSIDER ALERT) - Yesterday, the U.S. Department of Labor (DOL) announced a new proposed update to the salary threshold for the "white collar" exemptions to the Fair Labor Standards Act (FLSA)'s overtime pay requirements.

DOL proposes raising the standard salary threshold from its current level of $455 per week or $23,660 annually to $679 per week or $35,308 annually. It also raises the salary level for the Highly Compensated Exemption (HCE) to $147,414 from its current level of $100,000. The proposal does not make any changes to the duties requirements. DOL does, however, ask for comments on whether it should codify into law language that would require an update to the salary threshold via notice and comment rulemaking every four years.

DOL began the process of updating the overtime regulations on June 26, 2017, through a Request for Information (RFI) which sought comments about how the agency should go about updating the overtime regulations in light of a Texas federal court’s decision to enjoin it from enforcing the Obama administration’s 2016 changes. On September 25, 2017, CUPA-HR, in partnership with 20 other higher education associations, filed substantive comments on the RFI.

Once the proposed rule is published in the Federal Register early next week, the public will have 60 days to submit comments. CUPA-HR will continue evaluating the current proposal and work with members to prepare comments to submit on behalf of the higher education community.

For additional information, DOL has provided a dedicated page which includes a fact sheet and FAQ on the proposal.

 

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