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More employees may no longer be exempt from overtime if the rules proposed by the Department of Labor in March of 2019 become finalized. As discussed in our blog back in February, Secretary of Labor, Alexander Acosta, has indicated that the administration does support an increase in the salary limits. These limits have been only updated twice in the last 43 years and not at all since 2004.
The Obama administration attempted to raise the minimum salary for exemption from $23,600 to almost $48,000 per year. This was put on hold after a federal court in Texas invalidated this rule nationwide. The new proposed overtime rule takes a more modest approach and increases the threshold to $35,308 per year. This is still a significant increase and employers should begin to prepare for this change soon.
In addition, this rule includes the following:
The comment period for this closed May 21, 2019 and there haven’t been any more recent updates from the DOL at this time. Integrity Data will continue to keep an eye on this and other payroll and HR compliance issues that may impact your business.
Written by Tom Franz, Client Services Director - Integrity Data
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