July 31, 2017

U.S. Labor Department Wants Your Thoughts On Overtime Rule

Last Wednesday, the U.S. Department of Labor issued a Request for Information (RFI) on the Obama administration’s overtime rule, which was finalized last year. That rule, which federal courts prevented from going into effect, sought to raise the current salary threshold for employees exempt from overtime pay from $23,660 to $47,476 and also proposed to permit future automatic increases tied to inflation.

This RFI solicits feedback on questions related to the salary level test, the duties test, varying cost-of-living across different parts of the United States, inclusion of non-discretionary bonuses and incentive payments to satisfy a portion of the salary level, the salary test for highly compensated employees, and automatic updating of the salary level tests. As The Wall Street Journal explained, “The Labor Department is specifically seeking feedback on the appropriate salary level under which most workers are automatically eligible for overtime pay, whether that level should be increased on a regular schedule, and on the test to determine eligibility for a worker earning more than that amount.”

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