The U.S. Department of Labor (DOL) announced that it would not extend the comment period deadline for stakeholders to respond to its proposed changes to the Fair Labor Standards Act’s (FLSA) overtime provisions which ended on November 7, stating that the original 60-day comment period was a reasonable and adequate amount of time for stakeholders to provide their input and was consistent with prior comment periods for proposed FLSA changes.
The proposed changes would raise the salary threshold for overtime eligibility (for executive, administrative, and professional employees) from $35,568 to $55,068, and for highly compensated employees (HCEs) from $107,432 to $143,988, which would make millions of additional workers eligible for overtime pay.
Next Steps
The proposed changes are still in the early stages of the rulemaking process, and the DOL will review all comments received before issuing a final rule. If the final rule is similar to the proposed rule, it could have a significant impact on organizations of all sizes. In the interim, employers should carefully review the proposed changes and consider how they may impact their workforce.
Multistate employers should also be mindful of state laws which may require higher salary levels than those proposed under this federal rule. Currently, Alaska, California, Colorado, Maine, New York, and Washington have higher salary level requirements for certain exemptions.
Additional information on the proposed rule is available in this Special Alert from HR Works.
How HR Works Can Help
Current HR Works’ Virtual HR Helpline subscribers have unlimited access to answers to questions about the proposed FLSA exempt salary increase, as well as other HR/employment law topics, and 24/7 access to HR Works’ attorney-reviewed online compliance resource center (Comply), which offers human resources tools, forms, and resources. Additionally, Virtual HR Helpline subscribers receive two free FLSA Assessments each year (with the option to purchase the additional assessments for a fee). The HR Helpline can be reached at hrhelp@hrworks-inc.com or by calling 888-668-1271.
HR Strategic Services clients may contact their designated HR Strategic Partner for additional guidance and assistance with FLSA Assessments.
Non-HR Works clients may contact us for HR solutions by calling toll-free at 1-877-219-9062 or visiting our website.
