The Department of Labor recently announced a proposed rule that would extend overtime protections. Currently, an employee is exempt from overtime pay if he or she meets certain tests regarding the employee’s duties and is paid on a salary basis that is not less than $455 per week. The proposed rules would increase the salary threshold from $455 a week ($23,660 per year) to $970 a week ($50,440 per year) in 2016.
What Should Employers Do?
Although the change would not be effective until 2016, employers should evaluate each employee to identify any positions that would not meet the proposed increased salary threshold.
Laura M. Trujillo