Last week, the U.S. Department of Labor announced its proposed rule raising the salary threshold required for employees to qualify as overtime-exempt, from $684 per week ($35,568 per year) to $1,059 per week, about $55,000 per year. Read the US DOL News Release HERE.
Upon publication in the Federal Register, the notice of proposed rulemaking will be open for public comment for 60 days. A high volume of comments is expected, which may delay the final rule-making process into early 2024, and legal challenges also are expected once the final rule is published.
The fourth quarter of 2023 will be a good time to review and make changes to employee classifications and pay practices in anticipation of the new rule.
Contact us should you have any questions regarding this proposed rule or any other employment law matter.