The U.S. Department of Labor (DOL) this week announced a proposed rule that would raise the minimum salary level required for employees to be exempt from overtime.
Based on the proposal, employers would be required to pay overtime for working more than 40 hours per week to employees that make less than $35,308 a year, or $679 per week. The current salary threshold is $23,660, or $455 per week.
The increase is significantly less than “white collar exemption” changes under the Obama administration, which more than doubled salary exemption levels. That change was ruled invalid in 2017.
Labor contends the rule will allow a million additional American workers to become eligible for overtime.